US levy eyes ‘free riders’
ents such as casein and milk protein concentrates.
The National Dairy Board will collect the
money for nutrition research, consumer education, ‘issues management’ and building
demand for dairy consumption.

SUDESH KISSUN

Full coverage of Dairy
Business Conference

Pages 5, 7, 9

Farmers praised for helping
keep Rotorua lakes clean

Page 14

Feedpad shelters allow herd
sizes to increase

Page 28

News............................................................3-17

FONTERRA exports to the US will from
August 1 attract a new levy championed by
US dairy farmers but opposed by global exporters.
The levy of 10c/cwt (45.5kg) on “Foreign dairy products profit
all dairy-based imports into the US
will help pay for dairy research and from our market but rely on Us
consumption.
dairy farmers to promote it.”
US dairy processors and market– Jerry Kozak
ers also oppose the levy, fearing a
backlash from their export markets.
NMPF chairman Jerry Kozak says when
Fonterra says the levy will directly impact
its cost of exports to the US, and sets a prece- the national dairy promotion programme
dent when most countries are looking to open was set up in 1983, imports were a smaller
portion of domestic consumption.
trade barriers.
“It is particularly hard to understand when But times have changed, he says.
“Import shares have grown as
the US itself is a net exporter of dairy products, and the third-largest dairy exporter in a portion of the entire domestic
the world, and so has more to gain from re- US dairy market, which has also Jerry Kozak
moving trade impediments than from impos- grown.
“Foreign dairy products profit from our
“US dairy farmers have spent billions
ing them,” a Fonterra spokesman told Dairy
over 27 years to build a compelling case for market but rely on US dairy farmers to proNews.
The co-op says exporters in New Zealand, the consumption of cow milk in its various mote it.
“In two successive farm bills Congress
Australia, South America and the EU op- forms.
“Importers of foreign cheeses, as well as has said it’s time to end this free lunch for
pose the levy on the grounds it discriminates
specialty ingredients, have benefitted from foreign dairy interests.”
against imports.
But US dairy manufacturers and marketAfter 10 years lobbying by the National the huge surge in per capita cheese consumpMilk Producers Federation (NMPF), the fi- tion. Yet not a single dollar has been spent by ers oppose the levy.
The International Dairy Foods Associanal ruling was released last month by the US importers to help these efforts.”
Kozak says dairy importers are “the clas- tion, representing processors, is concerned
Department of Agriculture (USDA). It levies
how other countries will respond.
cheese and butter products, and dry ingredi- sic example of the free-rider phenomenon”.

farmers do things differently
and make $100,000 more annually than others.
Data collected by DairyBase
shows the top 20% of farmers
operate leaner and smarter to
ensure they drive operating expenses down and profits up.

Statistics show for every
cent/kgMS saved on basic
expenses, the average dairy
farmer would add $1200 to
their bottom line each year.
DairyBase manager Adam
Barker says operating costs
have a huge impact on a farm’s
profit.
On average during the
2008-09 season, the most profitable 20% of New Zealand’s

dairy farms spent 84c/kgMS
less on operating expenses
than the country as a whole.
“For the average New Zealand farm that’s worth about
$800/ha or about $100,000 per
year in operating profit.
“What is important, and
perhaps surprising, is what
causes the gap between the average farms and the most profitable ones.

“The data show it isn’t region or farming system or herd
size.
“It is management within
your farm system that makes
all the difference. If you have
a good understanding of your
farm business, you can then
target expenses to manage
them down and drive profits
up.”
Full report on page 13.

Mike Hutjens was raised on a 313 acre,
70 cow Holstein farm near Green Bay,
Wisconsin. In 1971, he earned his
joint doctorate degree in dairy science
and nutritional science with a minor
in biochemistry at the University of
Wisconsin, Madison.
Since 1979, Dr Hutjens has been a
member of the University of Illinois Dairy
and Animal Sciences Departments as
extension dairy specialist. He is the editor
of the National Dairy Database and Illinois
Dairy Report. Annually, he speaks at 90
to 100 meetings in Illinois and midwest
states.

DAIRY INDUSTRY leaders see no need for an
inquiry into milk prices.
They link the rise in domestic retail milk prices
to global markets now
paying near-record prices
for dairy products.
A consumer backlash,
fuelled by politicians and
urban media, has prompted the Commerce Commission to investigate
fresh milk pricing. This
has led to suggestions
the dairy industry should
have spoken up publicly
to counter consumer concerns about milk prices.
Fonterra chief execu-

tive Andrew Ferrier says
he can’t see a need for
the inquiry because the
system of pricing milk is
clear.
“Anyone is welcome to
look into the system. It’s
clear what the system is,”
he told Dairy News.
When looking at the
issue of local milk prices,
one has to look at milk
prices over time.
“Milk prices always
track the world market
and at times when they
go up consumers feel the
squeeze.
“But generally when
world prices go up you
see margins going down
on the processing and
selling of liquid milk and

that’s what you’re seeing
now.”
Several speakers at
a dairy conference last
week at Rotorua, including Professor Jacqueline
Rowarth, Massey University, criticised the inquiry,
saying milk in New Zealand was cheap and represented good value for
money.
Ferrier points to Fonterra Brands taking its
margins down to buffer
the high cycle of the dairy
market.
“But the reality is it’s a
cyclical market.
“The world is buying
dairy products on that
market and New Zealand
is no different from any-

one else in the world. So
sometime dairy products
will be more affordable
and sometimes less affordable.”
It’s not the role of the
government to subsidise
an agricultural product,
Ferrier says. Rather their
moves to free up international trade will create
an environment with less
volatility and more stable
prices.
Meanwhile DairyNZ
chief executive Tim
Mackle
acknowledges
some people in New Zealand are suffering in the
present recession and economic environment. He
agrees any price increase,
including food, makes

life hard for consumers.
But the issue is straightforward – a reflection of
international markets.
Mackle says the situation is no different from
that of oil. It’s a myth that,
because New Zealand is a
big food producer, domestic prices should be low.
But milk still represents excellent value for
money, he says. “We’re
talking about a nutritious
food. To compare it pricewise with water or soft
drinks is nonsensical.”

Storm in a milk cup... industry leaders are playing
down the inquiry into milk prices.

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CALLS FOR a

Commerce Commission inquiry into domestic milk
prices are an attempt to influence a
review of the Dairy Industry Restructuring Act, says the Fonterra Shareholders Council.
Some of the calls come from competing processors, all or part-overseas owned, council chairman Simon
Couper told Dairy News.
“These independent processors
require DIRA milk and it’s in their
best interests to pay as low a price as
possible.”
Most of such firms’ profits are distributed overseas which is not good
for the industry, he says.
“We have thousands of small and
medium-size [dairy farm] businesses
subsidising overseas-owned big businesses that compete against us.”
Couper wouldn’t name the companies he believes have complained
to the Commerce Commission, nor
would the commission reveal complainants.
But a commission spokeswoman
confirmed to Dairy News “other
dairy industry participants” have
called for an inquiry, as has Consumer New Zealand which has makes no
secret of its complaint.
At this stage the commission is

only examining the case for an enquiry; no timing is referred to. “We’re
looking at it in a bit more detail to
ensure the ‘i’s are dotted and ‘t’s
crossed.”
Commission chairman Mark Berry says pricing inquiries are not undertaken lightly.
The spokeswoman told Dairy
News only two have been done previously: one into gas distribution which
resulted in a recommendation to the
Commerce Minister being implemented; the other on international
airports where a recommendation to
regulate wasn’t implemented.
Goods or services may only be
regulated under the Commerce Act
if there is little or no competition and
the benefits of regulation outweigh its
cost.
The commission says with milk
there are potentially three market levels to investigate: supply of raw milk
to processors, manufacture and supply of milk products, and retailing of
milk products.
“The commission intends to review the operation of each of these
levels and consider whether it should
hold a price control inquiry,” says
Berry.
DIRA legislation, competition between the two major town milk processors and between the main supermarkets will be considered.

in brief
Westland launches farm code
WEST COAST cooperative Westland
looks set to steal a march on its national big brother by launching a contractually binding code of practice to
its members.
The code, developed in consultation with the board, a working group
of other suppliers, and bodies such

as Dairy NZ and the regional council,
will cover all areas of best practice
farm management, says chief executive Rod Quin. Westland last week
announced a 93% compliance rate
with West Coast Regional Council effluent disposal requirements on its
supplier farms.

“The marked reduction in calcium/magnesium related metabolic disorders in animals during spring as
well as a steady improvement in overall animal health, as a result of a single application of dolomite,
are the major reasons for the steady increase in demand for dolomite.”
To read more visit www.dolomite.co.nz or call 0800 436 566

Dairy News // april 12, 2011

5

dairy business conference

‘Don’t sell to foreigners’
PETER BURKE

MAORI MONEY is better than Chinese be-

cause it’s there for the long haul in farming,
says Tuku Morgan, Tainui.
Referring to the iwi’s joint bid with
Landcorp for the Crafar farms, Morgan
insists the farms should not be sold to foreigners.
“The difference is we’re there for the
long haul. When we buy farms we will
never sell because they will be passed down
as an investment for those coming after
us. Whereas there is no guarantee of that
nature from foreigners who come to this
country to buy our land,” he told the Dairy
Business Conference in Rotorua last week.
Morgan says Kiwi need not fear Maori
economic power because they are working
for the prosperity of the nation.
“We are trying to use our wealth to reduce the huge numbers of our people de-

pendent on the Crown by way of benefits.
We build wealth, not for personal gain but
so we can enrich and enhance the lives of
our people.”
Meanwhile Allan Crafar’s son Glen says
he’s been told come June he’ll be out of a
job as sharemilker on a Crafar farm at Reporoa.
He told Dairy News the receiver sacked
him. His father Allan suspects the reason is
“the wrong last name”.
Glen says he can’t understand why he’s
been sacked because he lifted production
on the farm and it complies with environmental standards.
Allan Crafar and his family, attending
the conference, mingled freely with delegates and chatted to many guest speakers.
He says he’d like to be back in the industry and is frustrated at not working a farm.
“I’ve had a lot support from people. They
say they’re thinking of us, but that doesn’t
help me financially.”

PETER BURKE

Allan Crafar and son,
Glen at the conference in
Rotorua last week.

Name change removes ‘negativity’
or an 800-cow farm in Southland. The world’s changed so
we’re trying to get away from
the negativity of large.”

PETER BURKE

nEGATIVITY OVER the words ‘large
herds’ prompted the conference name
change to Dairy Business Conference
from Large Herds Conference, says
the event chairman.
Canterbury dairy farmer Bryan
Beeston says people have become
sensitive to certain words. “In the old
days we had ‘milk fat’ and we changed
that to ‘milk solids’. It sounds better
and it is better.
“So with large herds the first thing
people would ask was ‘How many
cows do you have to own to come
along?”
Now it’s about being a successful
dairy farmer. Beeston says 42 years
ago the conference was set up by peo-

themselves which you can’t do today.
“The modern farm employs staff
and they work 50-hour weeks, with
annual holidays. When I started in the

“Whether it’s someone milking three farms of
250 cows or an 800-cow farm in Southland.
The world’s changed so we’re trying to get
away from the negativity of large.”
The conference is about the
‘business
of dairying’ and the
Conference chairman Bryan Beeston with
objective is to bring the conferfarmers David and Linda Last, Woodville.
ence into the 21st century. Dairy
ple increasing cow numbers from 300
farming is now a business; gone
to 400 and 500.
are elements of lifestyle.
“But now most New Zealand farms
“The lifestyle was when you and
have large herds. Whether it’s some- your wife milked 150 cows. The kids
one milking three farms of 250 cows were at home playing in the house by

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industry, we had one weekend off per
month.”
Staff are rostered and farming has
become a job like working in a supermarket.
The challenge is to attract the next
generation of farmers, hence the conference name change to attract young
people.

THE HEAD of DairyNZ
is warning dairy farmers: watch your environmental footprint.
Opportunity
abounds for more
dairying on existing
and new farms, says
Tim Mackle. But taking that opportunity
requires farmers to
demonstrate they are
dealing with their environmental footprint.
He concedes the
recent ‘report card’
on the Clean Streams
Accord was not a good
look for dairying in
some regions. Serious non-compliance
on effluent management had increased in
some regions including
Waikato.
“It is important to
point out effluent itself
is not a huge contributor to our footprint. It’s
a kind of Achilles heel –
a visible thing captured
in people’s minds.
“It’s something
we’ve got to get right
and we’re making some
progress.”
Huge effort is being
made to deal with the
effluent problem and
results are starting to
show, Mackle says. The
big issues are nitrogen
loss and water quality.

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Dairy News // april 12, 2011

7

dairy business conference

Investing more offshore
STRATEGICALLY, NEW

Zealand should invest
more in overseas dairy
farming says Fonterra exdirector and farm investor Mark Townshend.
Even while a Fonterra
director he strongly advocated farm investment
offshore, he says.
“Part of the reason
I stepped down from
the Fonterra board was
because I was so committed to the global farming concept in a private
capacity. There’s a huge
opportunity for Fonterra,
its shareholders and New
Zealand citizens to become more aggressive in
global dairy farming.”
New Zealand should
capitalise on the worldwide demand for food,
especially dairy products,
Townshend says. And
Fonterra, with its size
and credibility, is able to
invest in some developing
countries – places difficult for private companies to invest in.
Many New Zealand
dairy farmers are still
suspicious and unhappy
about New Zealand
investing in global dairy
ventures, he says.
“It would be great if
a New Zealand farmer,
when he became a
Fonterra shareholder,
could set some money
aside and travel the world
seeing for himself some
of the opportunities that
exist for dairy products
and investments.”
Townshend’s belief and confidence in
investing overseas began
modestly, when in 2005
he and some farmers
bought a 200ha farm in
Chile. Six years later it
is a 22,500ha operation
with 22,000 milking
cows and sufficient land
for 52,000 cows producing 260 million litres of
milk per year.
The company, Ma-

nuka, owns farms in the
Orsorno region 950km
from the capital Santiago.
The area resembles New
Zealand in having high
rainfall and fertile volcanic soils which grow
grass well.
Townshend says Chile
ticks all the boxes ‘agronomically’ for pastoral
farming: economics,
political stability and free
trade agreements.
“The ability to have
some bank debt there, a
tax agreement with New
Zealand and free flow of
capital are all positives re
deciding to invest there.”
Modelling to assess
the operation was based
on achieving New Zealand levels of productivity. “There is potential to
grow 5-15% more feed
than we can here.”
He points to the
advantages of a pasturebased operation. “Most
New Zealand farmers appreciate we have a lower
cost of production than
our feedlot cousins in
other parts of the world,
so grain prices largely set
milk prices because 90%
of the world’s milk is
produced on grain.”
Milk from the farms
goes to five companies,
one a Fonterra subsidiary,
Soprole, which takes
60% of the milk, mostly
for the rapidly developing
ingredients market.
Critical to the Chile
venture’s success has
been the ability to replicate the New Zealand
pastoral model. “We’ve
got experienced directors,
outstanding management
and skilled, passionate
farmers. Interestingly
we haven’t had any nasty
surprises.”
Also helping drive
profitability has been
low land prices. “Investing in Chile today is like
investing in Southland in
1995.”
Townshend and his
fellow investors are in it
for the long haul. As yet

in brief
Leferink to stand

FEDERATED FARMERS Dairy vice chairman Willy
Leferink appears ready to put his name forward
to head the section and probably gain a seat on
the Feds board at its June annual meeting.
Leferink, who has interests in six dairy farms
in mid Canterbury, says members are pushing him to take the role. But a few issues need
discussing.
He has been involved in Feds for about 12
years and has worked his way up from provincial to national level.

“There’s a huge opportunity for Fonterra, its
shareholders and New Zealand citizens to become
more aggressive in global dairy farming.”

the Chile farms are not
operating as efficiently
as those in New Zealand.

But their return on equity
would equal New Zealand’s top 10%. Improved

genetics and tighter calving patterns are expected
to lift returns.

reason

To deal with us, time and again.

George Gray (right), Grant Gillard (left)
and Richard Pirrit with Kate the dog.

For Fonterra supplier, Richard Pirrit,
there’s only one reason for dealing
with RD1 and Ballance: great service,
time and again.

relied on Grant to help me with the
technical stuff, as well as work a plan
around my budget. He comes through
every time.

“I have always dealt with RD1. They’ve
been good to us in the past and they’re
efficient. If there’s something I need to
know or something I need for the farm,
I’ll call George. RD1 always deliver; I like
the service and I like the people.

“This season, we’re renovating about
seven hectares. I’ve already given Grant
a budget and I’m working with George
on seed variety. I know their advice will
be up-to-date and they’re always
available.”

“We’ve always dealt with Ballance too.
Dad did and I saw no reason to change.
There’s a lot to know about fert and I’ve

And that’s the way it’s been for nearly
10 years. So, why don’t you deal with
us too?

THE DAYS of declining
dairy prices are over,
but not market volatility,
says Trade Minister Tim
Groser.
New Zealand dairying’s overall prospects
are excellent – with one
proviso.
“Though a rising tide
lifts all boats, people still
drown on a rising tide. So
people must be careful
about debt, have the right
balance sheets and use
the right technologies.”
Groser says market
volatility requires people
move forward with a
mix of “confidence and
prudence”.
“But looking at the

future, compared with
what I’ve seen for 20
years, it’s much more
promising.”
Because New Zealand
doesn’t produce sufficient
volumes of dairy products it must stay focussed
on the high-value end of
markets, he says.
“But there’s a place for
high quality, safe, commodity products from
New Zealand which are
driving the development
of the China market. In
other markets, such as
America, it’s all at the
high end. We can’t supply enough milk for the
world so it’s a matter of
finding the right niches.”
Groser says Belarus is
beginning to impact the
international dairy mar-

ket as an emerging power
not far behind Australia
in its share of the world
trade in cheese.
“This and other
factors tell us this is an
unexpected but interesting development.”
Groser is uncertain
whether Belarus could be
a market for New Zea-

land and says his job is to
allow entrepreneurs from
New Zealand to exercise
“freedom of choice” in
what they do.
“Whether New
Zealanders would see
opportunities to work
with this emerging power
is for the future. My job
is to remove the barriers

Tim Groser

to that.”
He reminds dairy
farmers they must ensure
the industry improves its
environmental footprint
if it is to retain overseas
markets.
Farmers know this, he
says. “I just want to encourage them to continue
in this direction.”

‘Work with us’
TUKU MORGAN of Waikato Tainui wants the big

legions, such as Fonterra and DairyNZ, to develop
formal working relationships with Maori.
He says such formal relationships do not exist at
a political level. Once this happens there can be a
cascade of other relationships at operational levels.
Generally, non-Maori do not appreciate the
scale and success of Maori agriculture, Morgan
says.
“Maori agriculture is a sleeping giant as is
Maori economic power. I don’t think there is full
awareness of the potential the Maori agricultural
sector can bring to the overall picture. I believe
non-Maori don’t understand what value and benefits Maori can offer.
“We share love of the land, we want to pass
on our farms to those who come after us, but we
have to be sustainable in our farming practices. So
issues of water quality and looking after the environment are major.”
Morgan says Maori cultural values and farming
practices concerned with looking after the environment hugely benefit all New Zealanders.
The scale of Maori innovation and creativity in
farming is just starting to unleash itself, Morgan
says.

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many questions about
Trading Among Farmers
and they need answers
fast if the initiative is to
succeed, says a multiplefarm owner and former
Fonterra board candidate
from Southland.
“The main issue is
farmers have little if
any understanding why
Fonterra requires $500
million in liquidity and
they’ve found it hard
to get that explained to
them,” Maurice Hardie
told Dairy News.
Meanwhile financial
investors and market
commentators say the
unit fund needs to be on
at least that scale to attract them. Consequently
there’s a “disconnect”,
says Hardie.
“Farmers are thinking one thing but the rest
of the world is thinking
something quite different.
There lies the disconnect.”
The other question
financial investors have
is why should they risk

their equity if they have
no representation.
Hardie says a discussion with a dozen or so
farmers on the subject
found a concensus that
they wouldn’t be putting
shares into the fund
unless it offered a better
return on their capital
than they could find
elsewhere.
With no guarantee of
that, the whole scheme
risks failing because
of a chicken-and-egg
situation: farmers won’t
release shares because
they’re not confident of
returns, meanwhile investors won’t buy in because
they don’t believe there’ll
be the necessary volume
for a liquid market.
“What farmers need
more than anything is
clarity on what happens
if they don’t invest shares
in the funds.”
With only one year to
go on the mandate given
to the board by last year’s
shareholder vote, Hardie
says TAF may also run
out of time, especially
as necessary legislative
changes could fall victim
to a tight, election- and
quake-curtailed parlia-

Dairy drops,
corn rises
ANDREW SWALLOW

mentary programme.
“And a new parliament
is always slow to get into
gear,” he notes.
If redemption risk is
the main reason TAF is
needed, Hardie points out
there is already a tool in
Fonterra’s constitution to
deal with that.
“That’s the option for

the board, to issue capital
notes, an equity device
meaning they would not
have to repay suppliers if
there is a run on the business of more than 5% of
its value.”
At present that would
be about $35m.
“So I question whether
they have ever used the

correct methodology in
the past.”
Hardie’s own view is
TAF is a strong concept,
but the downside is
it goes against many
shareholders’ stated
view that they do not
want non-farm investors
gaining any form of
control.

Maurice
Hardie

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record highs for corn, the main feed stuff in the US
industry.
Last week’s globalDairyTrade (gDT) auction
was back 2.4% at
$US4280/t on average compared to the
previous sale’s mean,
itself back 8.2% from
the March 2 high of
$US4826/t.
Over the same period currency climbed
from US73c/$NZ to
US76.7c, exacerbating the drop in New
Zealand dollar terms.
However, ASB chief economist Nick Tuffley says
prices are still at “a very solid level” and is confident
$7/kgMS is still on the cards for next season.
“We expect some moderation in prices as [dairy]
supply conditions in the world gradually improve. In
the developed economies these high prices will reduce
demand and that puts a cap on prices.”
While the corn price “should, in theory, slow growth
in US supply a little, what’s been fascinating is despite
[high feed prices] and culling herds the US supply has
remained fairly solid.”
Tuffley says a crash like 2007-08 isn’t likely.
“We expect next season’s payout to be a bit down
on this year’s but still high. A lot of it does come down
to the currency being a bit higher. That’s offsetting the
extent to which dairy has lifted.”

28/2/11 2:57:12 PM

12

Dairy News // April 12, 2011

news

System cost myths busted
The recent International Farm
Management Congress at Methven
heard a suite of dairy-specific
papers. Andrew Swallow picked up
on a couple from the ANZ, Massey
and Lincoln Universitysponsored event.

NO MATTER how you do
it – high or low input –
dairying in New Zealand
achieves a similar level
of return on assets via
all systems, says Massey
University professor
Nicola Shadbolt.
She analysed 600
farms’ DairyBase figures
for 2006-07 to 2008-09

and found, contrary to
frequently expressed
views, high input farms
“don’t lose control of
costs as they go into
these systems.”
“So the concern people have that as we move
to more intensive systems
we are going to lose our
competitive advantage is

refuted by these results.
The cost advantage is
still there. That’s when
you include opportunity
cost of capital as well,”
she told conference
delegates.
Problem is many other
figures are used in the
system debate, which
“is ongoing and unfor-

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tunately often fuelled by
misleading metrics.”
For example, production figures per hectare
and stocking rates.
“These are the
numbers so often quoted.
What’s your milksolids
per hectare? What’s your
stocking rate? Beware:
misleading metrics.”
DairyBase economic
farm surplus or operating profit figures show
system-four farms, as
defined by DairyNZ’s
classification system,
outperformed systems
one and two in 2006-07
and in 2007-08 systems
four and five outperformed systems one, two
and three.
“So if you’re just looking at operating profit
per ha – and some in the
industry suggest that’s
all you should be looking
at – you’d be saying out
of those two years surely
it’s a no-brainer. You’d be
looking at an intensified
system to achieve the best
profit.”
But in 2008-09, “the
year from hell when
prices dropped halfway
through the season and
most of us had locked
in our costs well in
advance,” there was no
significant difference in
EFS or operating profit
between systems.
“So you could still

conclude that, apart from
a year from hell that
doesn’t appear every year
in farming, out of those
three years you’d be
better offer doing system
four or system five.”
But the “real metric”
to look at is return on
capital or “assets”, she
stresses, and that shows
no difference between
any of the five systems in
2006-07 or 2007-08.
“Remember, that’s
what we’re in farming to
do; we’re in farm business to ensure our capital
is used to best effect.”
In 2008-09, the year
from hell, those intensive
farms were unable to
produce a high enough
operating profit to cope
with the extra capital and
systems three, four and
five were all much worse
than system one due to
“cost stickiness”, she
notes.
However, cost efficiency measures show
intensified systems
“creating better cost
leadership” in 2006-07
and 2007-08.
“So if we increase
production intensity we’ve improved cost
leadership – the power of
the denominator. That advantage disappears once
we have an unfavourable
milk-price-to-input-cost
ratio.”

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SETTING THE scene prior to Shadbolt’s presentation, Canterbury dairy farmer and Lincoln
lecturer/researcher Marv Pangborn outlined the
reasons for dairying’s 11% per annum growth in
the region since the early 1990s.
“The move to dairy has been a mix of push and
pull,” he says.
Irrigation improvement, better pasture management, forage conservation advances – notably
baleage, nitrogen fertiliser, livestock genetics and
effective technology transfer from the likes of
DairyNZ and Lincoln’s demonstration farm have
helped production per cow and per hectare surge
ahead of the national average.
On the push side, barring recent gains, declining wool and crop prices have been the drivers.
“The perception lamb prices have been bad
and that’s why people have gone to dairy is not
completely true. Lamb has tracked reasonably
well.”
As for the future, Pangborn and co-presenter
Keith Woodford say despite environmental concerns about water quantity and quality and effluent management, the dairy industry in the region
can easily double from its current 200,000ha to
400,000ha or more.

Comparing farm data
Plus, it provides benchmarks that allow
farmers to compare their use of resources
with other farm businesses.
DairyBase recently launched its Bureau
Service. For a small fee, the Bureau will
input farmers’ data into DairyBase and keep
it updated throughout the year. For more
information contact the DairyBase Bureau
Service.

Tel 07 858 3890

• Adam Barker is the manager of the
DairyNZ DairyBase.

Proportion of all owner-operators in 2008-09

25%
18%

15%

8%

2%
0-

8%

nts –
Supply agreeme
4%

30-

60-

90-

120-

150-

180-

210-

2%
240-

iscount

you choose the d

Proportion of the 20% most profitable owner-operators in 2008-09

25%

27%

Verdict 15 7 0 7/ D N

0-

3%
30-

60-

90-

120-

150-

180-

210-

240-

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10%

4%

SAVE

across the

18%
12%

240-

Figure 4.

Figure 3.
1% 10%

Figure 1.

18%

Other working
costs

27%

4%

aProportion
little
year
across
the 20%
most
profitable owner-operators in 2008-09
3% lessof each
all expense categories:
stock,
27%
25%
0306090120150180210240Feed costs (c/kgMS)feed, fertiliser, labour, repairs
most Average
profitable
20% of New
how much
management
mat- and maintenance, working
owner-operator
operating1 costs
in 2008--09
cents per kg/MS)
18%
Zealand’s dairy farms spent ters. It shows how profitabil- costs and overheads. But figDairyBase is an investment by New Zea12% a starting point.
■ All farms
(totalNew
= 478 Zealand
cents per kg/MS)
84 cents/kgMS less on112 oper- ity varies
within
ure 2 is only
10%
land dairy farmers through the dairy indus■ Top 20% (total = 394 cents per kg/MS)
100
ating95expenses than the coundairy farms. The spread sug- You need to delve further to
try good levy and operated by DairyNZ.
try as a 82whole? For the aver- gests there is a lot of potential find4%
saving ideas right for your
It 3%
is a web-based software tool that enage New Zealand farm that’s for farmers to make
better
business.
69
70
ables
farmers
their rural professional
90120150180210- and240worth about $800/ha or about profits.
Feed0- costs30-as an60-example
consultants to analyse farm physical infor55
53
55
Feed costs (c/kgMS)
48
$100,000 per year in operating Where should the savings
The cost of feed is an inmation and financial statements. This pro42
42
profit.
come
from?
teresting one to benchmark
29
vides an overall business view from a manWhat is important, and perYou may 20feel like you’re because it is one of the biggest
agement perspective rather than solely a tax
haps Labour
surprising,Stock
is what causes
operatingRepair
lean& already.
Where
Feed
Fertiliser
Other working
Overheadscosts for most farmers and
view.
maintenancesavings
costs come
the gap between the average can further
because it can be controlled.
DairyBase analyses the resources farmfarms and the most profitable from?
Figures 3 and 4 compare the
ers have and the way they’re using them.
ones. The data show it isn’t reThe chart above shows spread of feed costs for all
(1600)

Fertiliser

18%
12%

4%

18%

2%

25%

8%

2%

25%

20

Proportion of the 20% most profitable owner-operators in 2008-09

15%

19%of the 20% most profitable owner-operators in 2008-09
Proportion
14%

29

If neither of these explains
cost, then you might
One observation from these be sitting on an opportunity to
farms (total = 478 cents per kg/MS)
charts ■
isAllthat
many profitable save some money.
■ Top 20% (total = 394 cents per kg/MS)
farms actually have feed costs
And if your feed costs were
above the national average. more than $1.80/kgMS then it
Proportion of all owner-operators in 2008-09
And that might be appropri69appears pretty likely you could
70
25%have
ate for your farm too. This make some changes and
55
53
55
highlights the need to consider more money left in the bank.
DairyBase manager Adam
42
benchmark
data in the context Benchmarking18%
can help 18%Barker.
29
15%
of your own farm
The example shows how
20 system.
If your feed costs were benchmarking
8% analyses can to consider
8%individual costs in
Fertiliser
Repair &
Other working Overheads
above, say,
$1.20/kgMS
Costs
maintenance
costs in be used to highlight areas a whole farm context.
4%
2% there is potential to and production are interrelat2%
2008-09 it might be worth where
looking to see if this is ex- make0- positive
exercise
on
30- change
6090- your120- ed so
150-a benchmarking
180210240plained by your farm system farm. We’ve focussed Feed
should look at the full range of
just costs
on (c/kgMS)
or exceptional circumstances feed costs here as an illustra- influences that drive both of
that year.
tion. However, it is important these.

gion or farming system or herd there is no single expense on
size. It is management within which the most profitable
your farm system that makes farmers make their savings.
Proportion ofIfallyou
owner-operators
inWhat
2008-09tends to happen is
all the difference.
have
a good understanding
25% of your the top 20% of farmers spend
farm business, you can then
18%
18%
target expenses to manage15%
Proportion of all owner-operators in 2008-09
them down and drive profits
8%
8%
25%
up.
4%
2%
2%
We can see in from figure
0-

26%

53

20
Stock

69

70

82

55

48

Labour

Feed

53
42

Average owner-operator operating
costs
in 2008--09
cents per kg/MS)
most
profitable
farms.
the high

112

huge impact on a farm’s profit.
Through the data collected in
DairyBase, the statistics show
for every 1cent/kgMS saved
on basic expenses, the average
dairy farmer would add $1200
to their bottom line each year.
DairyBase data also shows
New Zealand’s top 20% most
profitable dairy farmers do
things differently. They are
operating leaner and smarter
to ensure they drive operating
expenses down and profits up.
Is it worth aiming for the
top 20%?
Did you know on average
during the 2008-09 season the

executive of the Bay of
Plenty Regional Council,
Bill Bayfield, says it’s a

mistake to focus on dairy
farmers as the cause
of problems in Lake
Rotorua.
He told a symposium
on the Rotorua lakes last
week the “monster” prob-

“It’s going to
be a wholeof-catchment
change, certainly
in terms of land
management and
quite possibly
land practices.
- Bill Bayfield
lems at Lake Rotorua are
bigger than just 26 or 27
dairy farmers.
Though they are
crucial to reducing pollution in the lake, he says,
it would wrong for the
community to think managing the dairy farmers
will, on its own, solve the
problem.
“It’s going to be a
whole-of-catchment
change, certainly in
terms of land management and quite possibly
land practices.
“I’m talking about
retaining the essential
use that’s there now but
looking at how you might
effect change… to the
management of a dairy
farm or a dairy grazing
unit, a cropping unit or
even a sheep-and-beef
unit.”
This may involve
looking at where farmers

are putting stock on their
properties, what fertiliser
is being applied and
effluent management systems on farms, Bayfield
says.
He’s impressed
farmers are prepared to
trial new systems and be
adaptive in dealing with
environment issues.
“We’re starting to see
recognition by some in
the farming community
that low-nitrogen farming
can still be profitable and
that’s exciting.
“In some cases there
is going to have to be a
range of land-use changes, for example sheepand-beef to forestry.
“And we’re going to
have explore whether you
can put dairy grazers
onto other properties during the key time in winter
and spring when soils are
waterlogged.”

Farmers show
commitment
BAYFIELD SAYS he’s full of praise for the ef-

forts of dairy farmers around Lake Rerewhakaaitu – in particular their willingness to
work with the community to clean up that lake.
“Their level of engagement and ownership
of the lake and their willingness to address
their farm practices to look after ‘their lake’ is
very strong. It’s been a pleasure to work with
them.
“For a start they initiated the action, or
part of the action. So while we were looking at
the lake they got together and with the help of
Sustainable Farming Fund got a person to engage with them and look at what actions they
could take on their farms.
“They started trialling things that would
work. They built that into a series of actions
and they now know what might work in that
area.”
Bayfield says the regional council and the
farmers are now at the stage of jointly working
out what actions to take. Rerewhakaaitu is a
model for others to follow, he says.
“I’m impressed with the local leadership
within that farming community. It’s been a
pleasure to work with them. We’re now getting closer to action on the ground and… what
exactly this means in practice. That’s another
lake I’m sure we will win on.”

16

Dairy News // April 12, 2011

world

Oz farmers take first
hit in milk price war
Southern Queensland dairy farmers Peter Brown, Ross McInnes and Ivan Teese
say they have already seen their farm incomes drop due to the supermarket milk
price war.

QUEENSLAND DAIRY farmers are taking their first
hits in the brutal supermarket milk price war. Receiving February milk cheques in the last week, many have
suffered a large drop in income for the month.
They say this drop in income can be directly linked
to the $A1/L supermarket brand milk marketing campaign started by Coles on Australia Day.

YOU SEE A
TISSUE SAMPLE

Kingaroy dairy farmer and president of the
Queensland Dairyfarmers Organisation, Brian Tessmann, says farmers supplying processor Parmalat had
part of their milk cheque linked directly to the sales of
processor proprietary branded milk.
“As such, since January 26 Coles’ cutthroat discounts have increased the sales of Coles branded milk
at the expense of proprietary branded milk sales.
“When processor proprietary branded milk sales
drop, our milk income drops. It’s that simple. This is
the first hit at the farm gate in the milk war.
“If Coles continues its cutthroat approach there
will be more. Since Coles decided to kick the dairy
industry in the guts on Australia Day, we know they’ve
gained market share for their brands and have devalued
milk at retail across the nation as other retailers have
dropped their prices to try and protect market share.
“Coles executives continue to deny there’s even a
problem. They continue to mislead their consumers
and the government by saying this won’t impact dairy
farmers. These milk cheques prove they’re wrong and
the impact is happening right now.
“They also claim prices went up last year for dairy
farmers, but in Queensland they went down by some
15% and in NSW and Victoria by 10%, for milk in
Coles bottles.
“It’s an insult to Australians for Coles to ask consumers to trust them. To devalue milk by hundreds of
millions of dollars in the domestic market and claim
there will be no impact defies logic.
“The Coles executives need to get some mud on
their boots and visit a Queensland dairy farm and meet
with the QDO.”
Tessmann says the January milk incomes were also
hit by production loss from the flood. But a breakdown
of data show the retail price war was having direct impact and if the discounting continues the impacts will
grow, undermining the industry in Queensland and
other milk-producing regions.
“For a million-litre farm, even a reduction of 1c/L
adds up to a loss of $A10,000 across the year.”

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NATIONAL FOODS is looking to build a $A132
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Burnie, Tasmania.
Managing director Andrew Reeves says the
National Foods cheese business has evolved
by brand and site acquisitions for 10 years with
little or no manufacturing optimisation. The
proposed Burnie plant would be a major commitment to the Tasmanian dairy industry.
“Tasmania’s reputation for clean, green and
exceptional environmental standards is a good
fit for the direction of the National Foods strategy to create high quality, sustainable market
leading brands.
“We’re looking forward to working with the
Tasmanian government on ways to enhance
Tasmania’s position as the premium state for
speciality cheese manufacture and innovation.”

World farming body

FARMING UNIONS from 40 countries met last
month at Brussels to form the World Farmers
Organisation.
UK’s National Farmers Union director of policy Martin Haworth, a key negotiator, says it will
raise the voice of the agricultural community to
help tackle world food insecurity.
The organisation, with members from Armenia to Zambia, will be based in Rome.

Dairy News // april 12, 2011

17

WORLD

Brian and Caroline Reidy on their farm in Sligo, western Ireland.

Irishman on tour
realised there are similar problems
around the world.
“In Ireland only 7% of farmers
are aged less than 35; five years ago
it was 13%, and worryingly 50% of
our farmers are over 60.
“Little is being done to address
this problem; it’s like there is a big

“Here began my learning about
the huge importance of openness
among farming families,” Reidy
BORN-AND-bred Irish dairy
says.
farmer Brian Reidy is passionate
“Openness and transparency is
about succession and land transcritical in succession planning, esfer. The 2009 Peter Daly Nuffield
pecially as there is always so much
Scholarship winner visited New
relationship history between sibZealand, Australia and the US to
lings.
study the subject.
“It is paramount all
“In Ireland only 7% of
Reidy (31) grew up dairy farmmembers of a family get
farmers are aged less than around the table, and lay
ing in Sligo, western Ireland. After
a farming apprenticeship at Agri- 35; five years ago it was
plans for succession on
cultural College Multy Farnham,
the table. Everyone’s views
13%, and worryingly 50%
County Westmeath, he returned 11
need to be heard, who gets
of our farmers are over 60.” what needs to be decided
years ago to the family farm.
“Peter Daly was a forward
and agreed upon, and the
thinking farmer,” says Reidy. “The white elephant in the room, yet evmust be transfer planned.
Peter Daly Trust [of which LIC is a eryone is ignoring it.”
Without this openness and transsponsor] was set up by a group of
In December 2009 the scholar- parency things are likely to imIrish dairy farmers following his ship enabled Reidy and his wife plode.”
death.”
Reidys last year visited Trevor
Caroline to travel to Australia
Scholarship
winners
get and New Zealand looking at how and Stacey Munsoon in Canter$23,000, then have 18 months to dairy farmers manage succession, bury. He had come to New Zealand
travel, research and gain informa- the transfer of land, and how each from Ireland 10 years before.
tion about their chosen topic, meet- country encourages future farmers.
“He started his working life in
ing as many farming/agricultural
“I had always wanted to visit New Zealand as a dairy farm workpeople as possible. He or she must New Zealand and Australia be- er and built a dairying career from
ultimately deliver a paper on their cause of their proactive approach to scratch, working his way up to assubject.
land transfer and I had built great sistant farm manager then manager.
“Generally people choose a top- relationships with Nuffield scholars
“Today Trevor is 50:50 shareic they are passionate about,” says from these countries.”
milking a 670 cross breed herd and
Reidy. “For me that was succesIn Victoria, Australia, they met continuing to build equity.”
sion and land transfer, because land Paul and Lisa Mumford who farm
They then met Wendy and Lyndsuccession and the transference of 450 Jersey cows, having taken over say Marshall at their holiday home
land is a huge problem in Ireland. I the farm from his parents.
at Rotorua.
GAIL HENSHAW

Award brings opportunities
BRIAN REIDY says the Peter
Daly Nuffield Scholarship has
opened doors, introduced him to
people and given him access to
information he would never otherwise have had.
“On a personal level I can recommend being a Nuffield Scholar; it’s been brilliant.”
When awarded the scholarship
he felt empowered, believing he
could make a world-changing difference.
“I don’t know now if I can do
much about changing the situation, but I will be writing a strong-

ly worded paper. There is a huge
problem in Ireland, and there are
not enough people coming into
farming. I will be making recommendations on a personal level.
“I learned a lot about how
farming businesses are run. The
New Zealand approach, in particular, grabbed me.
“Couples work together, husband and wife or partners; I
haven’t really seen that the way I
saw it in New Zealand.
“I was taken with the simplicity of how New Zealand and Australian farms operate on grass.

[And in both countries] lifestyle
and work/life balance is critical to
dairying success; it was a key factor on all the farms I visited.
“In Ireland land succession and
transfer are not really happening
and it’s a huge issue. Land transfer
and succession can get complicated because of different social and
historical links.
“My belief is land transfer
to farmers should happen when
they’re in their 20s or early 30s,
when they are at their peak.”
• Gail Henshaw is LIC communications advisor

18

Dairy News // April 12, 2011

opinion
Ruminating

Editorial

How to put a
price on milk

Too little too late?

milking it...
Change of diet

IS A change of diet on the cards for
cows in New Zealand?
Results of a study in Britain
indicate changing the diet of cattle
could reduce their emissions of
greenhouse gasses, particularly
methane.
The study, funded by the Department for Environment Food
and Rural Affairs, found feeding
higher levels of corn, oats and
higher-sugar grasses could reduce
methane emissions from livestock
farms.
DEFRA says agriculture contributes about 9% of UK greenhouse
gas emissions, half coming from
cows and sheep.
The agency also claims farming accounts for 41% of methane
emissions in the UK.
Increasing the proportion of
maize silage from 25 to 75% in
a short-term trial was found to
reduce methane emission per kgMS
by 6%.
High-sugar grasses could reduce
an animal’s methane emissions by
20% for every kilo of weight gain.

THE MILK price furore that has raged
all the way to the Commerce Commission highlights a gaping hole in
the agricultural landscape: proactive
public relations.
Dairy farmers and Fonterra have
endured a pasting on this issue and
copped a one-sided assessment by
consumer groups, politicians and
urban media.
If the dairy industry had an advocate worth their salt it would never
have come to this because the correct information would have been
put to media well in advance.
Proactive PR requires relationship building, education and an
ability to front foot an issue. The
only substantial response to the
milk price misinformation circulating
in media has been a reactive piece
from the Feds, but too little, too
late.
Where was DairyNZ, the levyfunded industry-good organisation
tasked with improving the industry’s
image? Where was Fonterra’s brigade of black-suited PR flaks?
This problem is common to all
primary industry. If you allow an
information vacuum to develop in
news media it will be filled by your
critics.

Asking for trouble
MILKING IT sees full time
troublemaker, part time
politician Hone Harawira
is running a poll of sorts,
asking respondents to

suggest names for his new
party.
One would think there’d
be no shortage of suggestions. Talk about inviting

WITH HELP from human genes,
cows can now make milk with
health promoting properties
resembling those of human breast
milk.
“The cows are making cow’s
milk with a human protein in it,”
said James Murray, a geneticist in
the animal science department at
the University of California, Davis,
who has done similar work with
goats but was not affiliated with
the new study.
“To say it is more like human
milk is stretching it a little. That’s
misleading. It also plays to the
fears of people opposed to it.”
Eventually, the research might
also help people with Crohn’s
disease, irritable bowel syndrome
and other gastrointestinal problems.
And while some headlines have
touted the discovery as a way to
get human breast milk out of the
udders of dairy cows, this kind of
transgenic milk is still far more
cow-like than human-like.
It simply contains a boosted
level of beneficial enzymes, much
like the milk human mothers
produce.

Write and Win!

trouble!
Suggestions floated in
the media include The Real
Maori Party and The Party
of Land and Hone.

THE PROSPECT of a Commerce Commission inquiry into
the price of milk went down like a lead balloon at a recent
dairy conference in Rotorua.
Many speakers appeared bewildered and annoyed such an
inquiry should be done, given that the process for setting milk
prices on the domestic market is pretty well known. What will
they find that’s new? asked delegates and speakers.
Should the industry take some blame for this problem?
Consumer anger over milk prices has been bubbling for some
time. Yet the industry made no effort to quell these concerns
or point out milk price in New Zealand is lower than in other
countries, apart from Australia where supermarkets are absorbing huge losses to increase market share.
Industry leaders at the conference pointed out fluctuations
in the price of milk is what you get in a free-market economy.
The fact farmers long ago shed government subsidies and
have to wear the ups and downs of international market prices
seems suddenly forgotten. Returning to the days of subsidies
is not a place farmers want to go.
A Kiwi urban myth says because we are big food producers,
local basic food prices should somehow be low. The public
needs to better understand how prices are determined.
But whose job is it to tell the consumers? Industry-good
organisation DairyNZ is running television advertisements to
improve public perception. A good idea may be a campaign to
raise consumer awareness on why milk prices are high.
Life is about making choices. In tough times luxuries such
as alcohol and tobacco may have to be pushed down the priority list.
Milk is important to every child’s diet, but even when it was
cheap how many people were buying it ahead of soft drinks
and other less healthy alternatives.
A renewed focus on milk may encourage people to see its
true value of milk. As the saying goes: “Price is not a benefit;
it’s what you pay for a benefit”.

Dairy News is published by Rural News Group Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of
the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Rural News Group Limited.

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casts of strong product
prices in the primary
sector contrasts starkly
with the human and
economic consequences
of local and international events. These
happenings are certain
to fuel volatility in our
farming and wider
economy.
Farming businesses
need to be wary of
jubilation – or, worse,
complacency – as milk,
meat and fibre prices
rise to record levels.
Market uncertainty
driven by economic
fallout from earthquakes, food safety
concerns and political
unrest in oil producing
countries has potential
to flow through to cost
structures. Assessing
business prospects
solely on income risks
inadequate response to
cost pressures and possible challenges from
interest rates.
For these reasons, I
challenge those in agribusiness to focus less
on product prices and
more on profit margins.
I have experienced a
number of business
cycles where premature
declarations of victorybased buoyant product
prices have resulted in
missed profit opportunities.
International milk
prices look particularly
strong at present. As
in the past these will
almost certainly be accompanied by upward
pressure on key input
prices. Unplanned or
unjustified exposure to
feed, fertiliser and energy costs can quickly
erode trading outcomes.
Priority must be
for farming operations to focus on their
competitive advantage
and apply maximum
effort to areas within
their control. The first
focus area must be
to optimise the profit
performance of pasture
based systems.
Successful farms
work to capitalise on
their natural advantage.
They maximise the benefits of reliable rainfall
or irrigation water, a
temperate climate and
ability to grow significant feed.
These can be
manipulated to generate tighter control of
operating costs and
protect profit outlook.
Taking the easy option

of simply buying feed to
fill deficits and generate production (often
for the sake of it) will
not allow farmers to
capture opportunity.
Challenging climatic

conditions and improving product prices have
resulted in much higher
use of purchased feed
in many operations this
season. This is severely
impacting margins. My
preliminary analysis of
clients’ 2011 financial
results suggests costs
are running 10-20%
higher than budgeted.
Other high risk
cost areas are where
payments are made
for services based on
percentage of revenue rather than being
linked to profit margin.
In particular, sharemilking contracts need
to be managed proactively. Unless these are
monitored to ensure
a sustainable result
there is a risk they will
lose contact with the
economic realities the
business faces.
I have recently
seen farm owners who
bought feed to protect
production hand over
much of the benefit to
sharemilkers who may
not have shared in this
cost. This is particularly the case where share
farming agreements
are predominantly for
labour and don’t share
the wider production
costs.
It is also important
to closely monitor the
trends of interest rates.
The economic shock
of international and
local adverse events is
still being absorbed by
markets. Given this
comes right behind the
global financial crisis,
it is likely reduced ability for banks to access
funds and impact of
international credit
ratings will come into
sharper focus.
Current lower
floating interest rates
may be helping many
cash flows at present.

However, locking down
a proportion of debt to
eliminate exposure to
interest spikes may be
timely, especially for
those still working hard
to consolidate their balance sheets.
Celebrating product prices is only one
side of the equation.

It is essential there is
an equivalent focus on
assessing the benefits of
farm inputs so the cost
price margin remains
balanced.

www.kerryryan.
co.nz

• Kerry Ryan is a Tauranga based agribusiness consultant.

Focus less on product prices and more on profit
margins, says agribusiness expert Kerry Ryan.

20

Dairy News // April 12, 2011

Agribusiness
Maori dairy factory
eyes Asian markets
PETER BURKE

A NEW milk plant for a Maoriowned farming operation is on
track for opening August 1. It will
make whole milkpowder (WMP)
for Vietnam and other Asian countries.
The plant owner Miraka is 80%
owned by Maori and 20% by Vietnam’s largest dairy company Vinamilk.
Miraka chairman Kingi Smiler
says the plant, west of Taupo, is
on budget and two weeks ahead of
schedule.
Before he set off to visit Vietnam, Smiler told Dairy News much
of the WMP produced at Miraka
will go to that country, part of the
company’s overall marketing strategy.
“We’re going there for further
discussions... to understand our
customer’s requirements.

“The senior management team has been on
board since January. Advertising has been
undertaken to recruit other staff and they will
start to come on board in the next few weeks.”

Miraka operations manager
Mike Payne with the new
plant in the background.

– Kingi Smiler
“And I’ll be visiting Thailand
and making other customer calls.”
Product from Miraka will also
go to other parts of Asia, Africa
and North America.
The roof of the $90 million plant
has just been put on and Smiler says
he’s pleased with progress.
The company has achieved its
target of having sufficient suppliers
to operate at 80-85% of capacity in
the first year. Smiler will not disclose the exact number of farmers
who have signed up to supply. They
include Maori and non-Maori.
“They are all in a pretty close
radius of the factory and we are extremely pleased,” Smiler says.

In its first year the factory will
produce only WMP from its 8
tonne drier.
The Miraka factory is similar in
size to plants operated by Synlait
and Open Country. The main difference is the Miraka factory will
be able to use geothermal power
from a Miraka partner.
Smiler says 60 full time staff
will be employed and recruitment
is going to plan.
“The senior management team
has been on board since January.
Advertising has been undertaken
to recruit other staff and they will
start to come on board in the next
few weeks.”

Support for Maori agribusiness
THE GOVERNMENT has affirmed

Maori agribusiness as a key priority.
Two recent reports will support lifting the productivity of Maori land and
agribusiness, says Agriculture Minister David Carter.
“Maori landowners are significant
contributors to primary sectors and
these reports identify further potential
for them to develop profitable and sustainable businesses. Economic growth
in Maori agribusiness boosts the wider New Zealand economy.”

Maori Affairs Minister Pita Sharples says the reports provide a helpful
insight into the economic, cultural and
social aspirations Maori communities
have for land ownership.
“The reports outline instances
where Maori are advancing their aspirations for the benefit of their whanau
now, and in future.
“I look forward to working with
Maori landowners to build on these
successes to assist them to achieve
their aspirations for their land.”

Stalwart sees rise of PKE
ADAM FRICKER

PALM KERNEL use in Taranaki has
skyrocketed for eight years and J
Swap stalwart John Macdonald has
been in the thick of it from day one.
He drove for the Matamata company when they had only one truck
in the region and were bringing the
stock feed in from Waikato. Macdonald now presides over J Swap’s storage and despatch facility just outside
of New Plymouth, where at least eight
trucks are permanently assigned to
Taranaki farmers, and where three
shiploads of PKE have been disgorged already in 2011.
He has seen PKE sales growth
first hand.
“When J Swap first started sell-

ing it down here they couldn’t keep
up with the demand,” says Macdonald. “Once farmers start using it
they don’t stop. Volumes have grown
quickly, with only one slow year in
eight, and most dairy farmers would
be using at least 200 tonnes a year.
Some use about 1000 tonnes on the
big farms.”
While the average use in Taranaki is less than the Waikato average,
Macdonald says demand is growing,
with an increasing proportion being
fed through in-shed systems. “The
auger trucks have to come down
[from Matamata] twice a week to
service those farms and meet the increased demand for blended feeds.”
Since he moved from driving to
sales, Macdonald has played a major
role in building Swap’s strong market

share, in spite of, or because of, his
unassuming manner.
“I hated the sales role at first,
then after about six months it just
clicked into place.”
Managing director Stephen Swap
is effusive in his praise for Macdonald and was happy to see him get
recognition in Dairy News.
“I can’t overstate how important
John’s contribution has been or how
well regarded he is down there,”
says Swap. “Taranaki is vital to our
business and John has played a huge
part in our success there.”
Macdonald has been battling
health issues for a while, but hasn’t
slowed up. He has been dealing with
local farmers long enough to see
them chase a deal with another supplier, then return because of poor ser-

J Swap stalwart
John Macdonald.

vice. “It makes a difference running
our own trucks rather than contractors. We work seven days a week.”
He believes J Swap PKE has a
strong future in Taranaki, particularly blended with minerals. How long

he can continue to contribute to that
future is unclear due to his health,
but his loyalty and commitment to
the Swap family is obvious, as is his
contribution to their strong position
in Taranaki.

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through Naki lad with a passion for
dairying. He runs 360 Jersey cows on a
100ha (eff.) property near Eltham in the
shadow of Mt Taranaki.
Born on a dairy farm at Kaponga,
he’s continued in the family tradition
and with the help of his school teacher
wife Shirley is a living testament to what
ambition, smart goal setting and hard
work can achieve.
From school Kissick trained as a motor mechanic then with Shirley headed
overseas. Back home in the early 1990s,
truck driving and helping on his in-laws
drystock farm, he decided on dairy
farming.
Writing about their road to success
makes this reporter tired.
They started with a 50/50 share milking contract, leased some land, bought
their own farm, took on another 50/50
contract then took on another lower
order sharemilking job. All this to
generate cash, gain equity and
strengthen their financial position. Put simply

he and Shirley were running four farms.
The key to this is Kissick’s personal
management skills. He modestly says
he counts as friends the people who’ve
worked for him. “If they’re in the area
they might call in for a coffee.”
Now he has just one farm, the result
of a plan hatched several years ago. “The
first goal was getting the 50/50, then I
saw an opportunity of leasing land
which happened to be next door.”
The second 50/50 came up with the
same farm owner – all part of goal setting. Goals are important; they must be
measurable and achievable, he says.
He wrote down his goals at the time
and still has the records of his plans that
came to fruition.
Seven years ago he bought the present farm, a good one with excellent infrastructure. He likes the Jersey, a “good
one man cow”.
“In our first season we did only
115,000kgMS;
now
I’m
doing
145,000kgMS.”
This he attributes to adjusting the
stocking rate and feeding less supplements and generally working smarter.
For supplements he grows
about 8ha of maize silage and has bought

Bede Kissick with daughter Sophie and their Jersey cows.

in about 240 tonnes of PKE which
takes out the troughs of pasture
growth and enables him to maintain
consistent production. In November
he planted fodder beet when, as he
puts it, things weren’t looking too
good and the usual amount of grass
silage could not be harvested.
Kissick’s region has a climate

conducive to dairy production but
his feed budgets include contingencies for feed deficits. The key to
success is keeping his finger on the
pulse.
“Knowing what’s happening in
advance, being proactive rather and
reactive to conditions. I use a farm
consultant, Tony Rogers from Wait-

ara, and we have monthly meetings.
“I do weekly pasture cover
walks. We monitor growth so when
there is a surplus or a deficit we
notice it. And therefore we are able
to counteract that by feeding supplement or conserving surpluses.
Monitoring is the most important
thing you can do.”

Environment also counts
BEDE KISSICK is committed

Maize crop grows in the shadow of Mt
Taranaki on the Kissick farm.

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to the Clean Streams Accord
and has begun riparian planting on a stream on his property.
He has fenced this off
from livestock and has been
planting the banks with natives.
“The regional council

came and had a look at the
property. They do a plan in
consultation with the farm
owner.
“The plants are supplied by
the council at cost; to which
you add the fencing off of the
streams.”
More riparian planting is
planned. Already he says 80%

of the streams are fenced (one
paddock left to do) and 90%
of that is planted out.
Kissick likes the scheme;
it keeps the streams clean and
acts as filter for any leaching
nutrients. He says he doesn’t
have nitrate leaching problems on the farm because he’s
not a heavy user of nitrogen.

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Otago Sharemilkers/Equity
Farmer of the Year winners,
Tim and Lorraine Johnson.

Latecomers
prove a point
“We appreciate and recognise the
strengths and weaknesses of our employee and give good positive encouragement and training, hence we have a
stable workforce,” Tim says.
Runners-up were Taieri Plains 50%
sharemilkers Cameron and Anna Edgecombe, winning $8900 in prizes.
The 2011 Otago Farm Manager of
the Year is Scott Levings, and 2011
Otago Dairy Trainee of the Year is
Brendan Morrison.
Levings has been in the industry five
years, managing a 625-cow farm for
Grant and Gaynor Scott the entire time.
“I received extra training and support in my first few years as I developed
my skill base and gained the required
experience,” he says. “I have tried to
fast track this by completing nutrition
training, a farm manager’s programme
and studying Agriculture ITO papers.
“A strength of the business is the
willingness of the farm owners to trial
and implement new technologies and
systems to achieve efficiencies, financial gain or improvements to the overall
business.”

Team work is key
THE 2011 Canterbury North Otago

Farm Managers of the Year Michael
and Susan Woodward pride themselves on team work, leadership and
can-do attitude.
They also value the opportunity
offered by the scale of the 2000-cow
Synlait farm where they contract
milk at Rakaia.
“We have the ability to manage
stock, people and grass to our advan-

tage to make the business successful.
“Such things as cost savings by
bulk purchases, brand recognition
and building relationships [help]
make us a successful farming business.”
The 2011 Canterbury North Otago
Sharemilker/Equity Farmers of the
Year are Rob and Debbie Mackle,
and 2011 Dairy Trainee of the Year is
Abigail Vickers.

Sharemilker/Equity Farmers of the
Year, Lindsey and Clare McClintock,
is to double the size of their sharemilking business.
The couple 50% sharemilk 300
cows for Adrian and Bev Simmonds
at Winton, but want to increase their
herd to 600 cows.
The couple’s long term goal is to
buy a 450-cow self contained farm.
It was the first time the Mc-

Clintock’s had entered the dairy
awards, doing so to meet like-minded
people.
“We are passionate about dairying
as our livelihood and we enjoy being
able to involve our young family in
the day-to-day farm life.”
The couple says their focus on
business growth is a strength and
they keep ‘moving the goalposts’. We
try and achieve the goals we set ourselves.”

target
summer
deficiencies

z

try Tim and Lorraine Johnson are no
slouches. They’ve won the 2011 Otago
Sharemilker/Equity Farmer of the Year
competition, receiving $13,500 cash
and prizes.
“As newcomers to the industry, and
being in our forties with a good business background, we have a sense of
urgency about where we’re heading,”
he says.
The Johnsons are 50% sharemilking
a 352-cow herd for Dairy Holdings at
Tapanui.
They plan to move to a larger 50%
sharemilking position or take on a lower order sharemilking position with a
20-30% equity share.
They entered the awards for the first
time to better understand their business, showcase their abilities and increase their profile.
Entering the industry in 2007, they
quickly progressed from assistants to
managing and now sharemilking.
They each bring different strengths
and abilities to the business and believe
they are good employers.

Regional R&D update for farmers
FARMER EVENTS on
industry R&D work relevant to regional farming
issues kick off this week.
Leading Taranaki
dairy farmers will
this Tuesday impart
their knowledge about
operating high- and
low-input farm systems
at DairyNZ’s Face-to-

Face event.
The discussion panel
will feature local farmers
Greg Topless, Bede Kissick and Hayden Lawrence. Venue is The Hub,
Hawera from 9.30am.
A Face-to-Face event
for lower North Island
will be held at the Woodville Racecourse Thurs-

the
g
din ls for
i
v
Pro t too ﬀ
righ ying o
dr

day. Similar events will
be held in Waikato and
Southland next month.
DairyNZ chief executive Tim Mackle says the
events allow farmers
to see how their levy is
spent.
“These events will be
taking the latest DairyNZ
work to the regions to

discuss tangible results
and how those can be
implemented on farm.
Topics have been customised for the regions by
DairyNZ.”
Regional team manager Chris Murphy says
farming isn’t the same in
Taranaki as in Invercargill.

“The issues
“The issues farmers
farmers deal with
deal with in different
in different regions can be quite
regions can be quite
different. And
different.”
the Face-to-Face
events will be a
– Chris Murphy
great chance for
DairyNZ people
to discuss those
and opportunities with
local dairying challenges farmers in attendance.”
DairyNZ Taranaki
regional leader Jo DeutzEbeling says the panel
discussion at the region’s
event will focus on comparing low and high input
farm systems.
“The three local farmers will discuss the key
challenges they are facing
as they aim to maintain
their success and sustain
their businesses. Farmers
considering switching to
a higher or lower input
farm system [will get
to] see what challenges
they may face and how
they can prepare for the
change.”
One of the more
controversial workshop
sessions will debate the
merits of milking fewer
cows.
“Because we’ve had
so many extreme weather
events over the past few
seasons, plus we have
higher genetic merit
stock, there are a lot of
farmers asking themselves if it makes sense
to milk fewer cows,” she
says.
DairyNZ senior
scientist Kevin Macdonald will share his latest
research in this area.
“There will be good
discussion about how
farmers can reduce environmental impact while
also maintaining profit,”
says Deutz-Ebeling.
Lower North Island
farmers will get the
chance to learn about the
latest industry research.

DairyNZ regional
leader Scott Ridsdale
says the event [will
highlight] industry work
relevant to the lower
North Island region.
“There’s a lot of work
going on within DairyNZ
in pasture management,
new feeds, how to use
crops and supplements,
optimum stocking rates
and more.
“The scientists [doing]
the latest research in
these areas will… share
how their findings can be
implemented on farms
now. Plus, there will
be… a snapshot of some
of the new and different
research that will deliver
solutions for farmers beyond 2020.”
DairyNZ economist
Matthew Newman will
lead a session on why
volatility is important
and how it has changed.
“He’ll go through the
different risks farmers
face. Plus, he’ll walk
attendees through how
to benchmark their risk
profile against similar
farm businesses to see
how they compare,” says
Ridsdale.
Registration is free to
levy-paying farmers and
their staff; others pay
$50. Start time 9.30am.
Lunch provided. Registration prior is essential:

www.dairynz.co.nz/
facetofaceevents.

Free health
checks
AS PART of the Face-to-Face event, health checks

are being offered to farmers.
DairyNZ, hosting the project with the New Zealand Institute of Rural Health, says the free checks
give busy farmers opportunity to make health a top
priority.
“Dairy farmers are some of the busiest people.
And often when people get busy their health can
suffer,” its says.
“It’s especially hard for some farmers to take
the time to be proactive and get vital health statistics checked.
“So… a Health Pit Stop at the Face-to-Face
events allows farmers to get their blood pressure,
cholesterol and glucose checked.”

26

Dairy News // April 12, 2011

animal health
‘Evidence grows for
biological farming’
it. We all know science
eventually proved her
correct. (Reid died in
August 2006)
Today we have a parallel in the debate about
soil carbon and biological
farming. The pastoral
science community

PETER FLOYD

REMEMBER GLADYS

Reid? She was the
woman who in the 1970s
insisted dosing stock with
zinc would protect them
against facial eczema.
She was a registered
nurse and so had medical
knowledge and she had
done a lot of experimenting with livestock.
Nevertheless, she and her
views were rubbished by
the science establishment
of the day.
“Where’s the evidence?” they asked,
knowing there was
no scientific evidence
because nobody had done
the work.
I was a part of that.
I remember chairing a
meeting at Te Aroha at
which Gladys stood, way
up the back, and told us
about her experiences.
I tried to get her to sit
down and keep quiet but
she refused.
Talking with her later
that afternoon I realised
she had put a lot of effort
into her work and there
could be something in

Gladys Reid

appears convinced the
only way to build up soil
organic matter is to pour
on the phosphate and
nitrogen, and that many
pasture soils are already
‘saturated’ with carbon
and will not absorb any
more.
The idea biological
farming techniques –
using dolomite, seaweed
extracts, compost and
bio-inoculants – can
increase soil carbon and

Auto Inline Liquid Dispenser

improve plant and animal
health is said to be
ridiculous. Where is the
evidence? they ask.
I’m pleased to say the
evidence is accumulating,
as I discovered in February at the international
Soil Carbon Sequestration Stakeholder Workshop in Sydney. There
the latest research in soil
carbon was presented to
farming and agribusiness
representatives.
It was preceded by a
three-day summit of soil
scientists from North
America, Europe and
Australia and one from
New Zealand.
Scientific opinion is
starting to acknowledge
the value of a more ‘biological’ approach to soil
management and security. The change in mindset is caused by greater
understanding of the role
of microbes in providing
a bridge between plants
and soil particles and the
ability and willingness
to measure soil carbon
deeper within the soil
profile.
Measuring soil carbon
is providing evidence

Measurement
of soil carbon
annually
and the
demonstration
of cause and
effect are
starting to give
the biological
approach more
credibility.
some farm management
practices can increase
topsoil depth and subsoil
non-labile carbon even
in carbon-rich soils. On
pastoral farms these
practices include:
• Reliance on permanent, multi-species

It took a ‘non-scientist’ to
jog the researchers into
looking at zinc as a facial
eczema preventative.

pastures.
• Avoidance of pugging and cultivation.
• Increased grazing
residuals.
• Reduced production
pressure with focus on
sustainability and profitability.
• Changed fertiliser
regime to avoid soluble
P and N and focus on
balancing soil minerals.
• The measurement
of soil carbon annually
and the demonstration of
cause and effect are starting to give the biological

A WHOLE new marketing strat-

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Mark Bryan
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they maintain healthier herds.
This suggestion from VetSouth
vet Mark Bryan.
Somewhat tongue-in-cheek
he says, in Dairy Cattle Vets
Newsletter, March 2011, writing chiefly about intensification of the dairy industry, “let’s pay farmers more
if they have better welfare,
cleaner milk, and look after
the environment more”.
“Let’s lose this hopeless
cooperative mentality that
a farmer with a cell count
of 350,000, 12% death rate
and an effluent pump beside
a creek should be paid the
same as his neighbor with a

cell count of 150,000, a death
rate of 5% and perfect effluent
compliance.”
Let’s pay more to farmers
with less-diseased milk, Bryan
says.
“But, whoops, that means
we’d need to start finding out
how many herds actually have
Johne’s and Salmonella, and
what our incidence of lameness
really is.
“Perhaps while we’re at it
we could record all disease,
and maybe even identify cows
properly.
“Who knows, it could be the
start of a whole new marketing
strategy for NZ Inc.”

Had a GUTS full of
• LOW PRODUCTION
• LOW COW FERTILITY
• POOR PASTURE PRODUCTION
Because of WET springs
and DRY summers and autumns

Can Handle
•
•
•
•
•
•
•

• Peter Floyd is the
managing director of
eCogent.

ti

Quick
Release
Couplings

Pressure
Release

Tel. 0800 433 276
www.ecogent.biz

on

ig

ib
Vis

carbon is possible and
could result in carbon
credits.
Research to verify this
would be welcome but
is unlikely to be carried
out here given the current
state of thinking in this
country. Fortunately the
Australians are onto it.
Somewhere Gladys
is nodding ruefully and
smiling.

Paying more: what next?

Water Flow Indicator

Outlet

approach more credibility.
eCogent seeks to
enhance profitability by
sustainable production,
and this focus led us to
examine soil carbon in
depth. If you can measure it you can manage
it, and many eCogent
members are doing that.
For four years we have
developed a practical
measurement system
and our experience so
far indicates that, with
the right management,
a steady increase in soil

P P P can install a feed
system in to your shed
between milkings

Features:
• Water driven – no power required
• Non-contact indication – no seals to wear
• Designed for minimal maintenance
• Available in packs of 2, 3 & 5 units
Several sizes and mast lengths available

roofed shelters.
Says Redpath director
Glen Williams, “We’ve
held a number of open
days this season. Farmers like to be able to quiz
the owners directly on
the facts about how the
project went and also the
benefits and negatives of
the system.

“Many of our customer’s use a woodchip
based deep-litter floor
system and often are
looking to lift cow numbers by up to10%.
“Covering the feedpad allows this to be
done by reducing stress
on pastures and better
environmental condi-

tions for the cows when
extremes of weather hit
the farm.
“An added environmental benefit is the roof
virtually eliminates rain
washing an intensively
used feedpad area.
“This building in
Kerikeri is on a very
wind-prone position – a

Shane and
Michelle
Lawson,
Kerikeri.

essential... salt &
supplementary feeds

Feedpad shelter open days draw good crowds, says
shed maker Redpath.

great test for the building and its covering’s
durability for a year.”
Lawsons say the
shelter’s main benefits
are minimal pasture
damage, less lameness
and mastitis and “future
proofing their business
in an environmentally
friendly way”.
“It’s easy to manage
the soft-litter woodchip
system; it pretty much
looks after itself. The
affordable cost of the
buildings makes them
efficient and allows us
to operate a system that
works and pays for itself
quickly.”
Lawsons began building their pad and shelter
in April 2010. The job
took two weeks.
Says Shane, “Once
we’d scraped the site
level and had the underfloor drainage positioned
the boys from Redpath
had the building up and
covered [within 10 days].
We were pleased to have
the use of the building through the wetter
months.”
Redpath says the
clear Durashelter roofing membrane used on
its dairy shelter is 30%
thicker than previously
offered. This gives superior resistance to wind

and service life is now at
least ten years.
Durashelter roofing
is crucial to the shelter’s
performance, allowing a
high percentage of UV
light through to the soft
litter floor, keeping the
litter dry and bacteria
levels low.
For warmer weather,
optional overhead shade
systems and fully ventilated roofs are ideal.
Williams says the
average cost of a building does not exceed
$350 per cow. Farmers looking to improve
efficiency and “future
proof” their businesses
re environmental issues
with feedpad operations
can justify this cost, he
says.
Redpath says it has
developed a lot of knowhow on soft floor, feed
and drainage systems
for deep-litter shelters.
Needs differ from farm
to farm.
“There is quite a difference in the management of the building
between farmers using
them as wintering barns
and those using them for
feedout shelters,” Williams says.

Tel. 0508 733 728
www.standoffshelters.co.nz

Dairy News // april 12, 2011

29

animal health

Survey shows lameness
causes, incidence
A SURVEY of Canterbury, North Otago and
Southland dairy farmers
reveals herd management
practices that appear to
influence lameness, says
Fred Hoekstra, of Veehof
Dairy Services, Ashburton.
The survey was part
of a study testing the
relationship between
dietary fibre and lameness. The survey in
Canterbury was done by
nutritionist Wybe Kuperus, veterinarian Helwi
Tacoma, Fred Hoekstra
and research assistant
Marius-Hans Troost, of
Lincoln University.
Kuperus says 342
questionnaires were sent
out and, based on 108

replies, a relationship
appears likely between
how cows are handled
on the way to the dairy
and the incidence of feet
problems.
Cows pushed along,
on the track and in the
yard, showed increased
lameness. Cows having to
walk further than 1km to
a dairy shed also showed
higher incidence of feet
problems.
The message seems to
be “no hurry, no worry,”
Kuperus says.
Less lameness
About 43% of herds were
always allowed to walk
to the dairy at their own
pace, and this group
showed less lameness
than the 57% of herds not

allowed to walk at their
own pace.
In the group always
allowed to walk at their
own pace, 56.5% had a
lameness incidence of
zero to 5%, 37% had an
incidence of 6-15%, and
6.5% of herds suffered
more than 15% of the
herd lame.
When cows were not
always allowed to walk at
their own pace. 24.6% of
the herds had zero to 5%
lameness, but 62.3% fell
into the 6-15% lameness
category, and 13.1% had
at least 15% of the herd
lame.
Higher use of a backing
gate to push cows into
sheds also appears to
increase feet problems. In

herds where the backing gate was moved at
least 10 times, 24% had
at least 15% of the herd
lame.
If the backing gate was
moved less than 10
times. 5% of the herds
suffered at least 15%
lameness, and 43% had
an incidence of zero
to 5% lameness in the
herd. Survey figures also
showed that walking less
than 1km to the dairy
was associated with less
lameness. This may be
because more walking
increases the chance of
mechanical damage and
increases the likelihood
of human impatience in
bringing in the herd.
Other factors which be-

Quiet authority
egotism in his nostrils, the result of running his experience
up against the science establishFRED HOEKSTRA speaks quiment’s thinking about causes
etly, but with authority. He and
of lameness.
his staff last year worked
Hoekstra
came
on 12,000 cows’ hooves,
to New Zealand 20
chiefly the back ones where
years ago after formal
the majority of problems
studying dairying in
show up.
Holland then workAfter 16 years of hoof
ing briefly on dairy
care in New Zealand –
farms there. He came to
underpinned by his
New Zealand to find
Diploma of Profesgreater opportunity
sional Training in Fred Hoekstra
and began working
Bovine Pedicure from Holland in dairying.
– Hoekstra is beginning to make
But what he did not find here
waves about bovine lameness.
was expertise in hoof care. SeeAttending the recent interna- ing opportunity to specialise, he
tional Lameness in Ruminants returned to Holland, took the hoof
conference (Rotorua, Feb/March) care diploma course then came
left him with a whiff of academic back and “took the plunge”, setNEIL KEATING

ting up his Veehof Dairy Services
with his wife Sandy.
“Four years working on farms
here showed me farmers didn’t
know enough about trimming
hooves. They had some basic understanding but they didn’t need
huge expertise. They got away
with less-than-ideal trimming because soft pasture conforms to the
shape of a cow’s hoof (the outer
claw is larger than the inner) so
differential weight bearing is not
critical.
“Contrast this with Europe
where most cows stand much of
the year on hard surfaces.”
But now this is changing,
Hoekstra points out, because of
Kiwi dairying’s move to feed pads
and cow housing.

To page 30

MAUNGA’S LEGACY
Impact sire, Tawa Grove Maunga-ET SJ3 is retiring. We have extremely limited
stocks of Maunga, and, as an appropriate send off we though it only right that
Maunga should continue to do good - even beyond the farm gate. Final semen
stocks will be auctioned with ALL proceeds going to the Red Cross Christchurch
Earthquake Appeal.
Lead bidder will also receive a special invitation to CRV AmBreed to farewell
Maunga including centre tour, flights, accommodation and some other surprises.

came apparent in the
survey:
Cows in small
herds are less vulnerable to lameness.
Herds with more
overseas HolsteinFriesian genetics may be
more vulnerable to high
incidence of lameness.
Herds fed grain recorded more lameness.
Herds walking on tracks
To page 30

30

Dairy News // April 12, 2011

animal health products

‘Better winter in big bales’
SIZE REALLY does mat-

ter during the wintering
of large herds, says the
Waste-Not stock feeder
maker AgBrand Products
Ltd.
The key issue is
improving efficiency by
feeding big bales, the
company says.
A request from an
Ashburton dairy farmer

in 2008 prompted AgBrand’s release of a large
feeder and it has gone on
from there.
This 3.8 x 1.6m unit,
the S5 bolted oval, has 26
feed positions. Use for
big round and rectangular bales along with loose
feed, the company says.
Farmers say one S5
feeder is enough for 80

cows when used together
with breaks of kale and
other supplementary
crops, AgBrand says.
Mark Slee of Melrose
Dairies, Ashburton, in
2009 asked Agbrand to
find out how he could
enhance supplement
feeding his herd of 2000.
The large oval S5
feeder was the answer,

the company says. Slee
bought 20 of the S5s.
Filling them with
bales of straw ensured the
feed was eaten instead of
30% of it being trodden
and wasted.
Next, Slee in 2010
bought several AgBrand
weaner feeders for his
calves, plus six more S5s.
The 30% feed savings he

was making enabled him
to increase the farm’s
stock levels. Now he
milks 2500 head.
The company says the
success of the S5 in mid
Canterbury has prompted
numbers of dairy farmers
to begin using these big
feeders, which allow
cows to eat big bales in
their own time.
Filled every two days,
they ensure “almost total
utilisation of feed” and
save a lot of tractor and
man hours.

The design forces the
cows to eat with their
heads between the arches,
minimising waste.
Tel. 0800 104 404

Lameness survey

®

From page 29

with a high crown (over 50cm height difference between middle of the track and side) had less lameness
compared with herds walking on tracks with lower
crowns.
Herds fed brassica seem more vulnerable to lameness; Southland herds fed brassica showed increased
lameness during spring. This may be due to rumen
upsets, with change of diet to pasture leading in turn
to laminitis and reduced claw quality.
Kuperus says though survey results highlight possible relationships, more work needs to be done to
prove cause and effect.
Application has been made to Dairy InSight for funding to research in Southland the impact on hoof health
of transition from brassica to pasture and vice versa.
Tel. 0800 833 463

Quiet authority
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Treated cows had significantly reduced somatic cell counts at first
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From page 29

“Most people haven’t a clue what preventative
or curative hoof trimming is about.
“They tend to lift the foot, see a problem – perhaps see pus or blood emerge – then they think
they’ve got it.
“But just as you can’t buy a dentist chair and
gear and so qualify to set up as a dentist, similarly you can’t without training assume expertise
in hoof trimming.
“The way things are [regarding lameness] is
different from how the experts say they are.”
This view is proving to be quite controversial
within the industry as it challenges the more commonly held theories regarding the causes of lameness in New Zealand.
“I’m not trying to prove others wrong, but to
get at the truth of this.”
“We’ve done some research and we will keep
doing it. More farmers are now accepting what
we’re saying.
“The underlying issue is laminitis and its
causes. Laminitis is symptomatic of an underlying
disease affecting the live tissue in a cow’s claw.
That disease has two causes: stress from bad handling in sheds, and diet which does not promote
hoof health.
“Stress in cows results from dairy workers’
yelling at them and pushing them in yards.
“The diet issue is, essentially, that you can’t
feed for optimum hoof health in the context of
wanting higher production.
“A healthy hoof diet would include a lot of
‘stalky’ material but that wouldn’t get the farmer
much milk.
“Pasture-based diets do not produce perfectly
healthy cows. We need more research into diet.”

Dairy News // april 12, 2011

31

animal breeding

Herd fertility made easy
GETTING MORE cows
to achieve breeding
in calf is the biggest
objectives, is a key
improvement you can
element in getting cows
make to your dairy
in calf. Getting the
business.
right bull for the job
What does profitdoesn’t have to be difable dairying mean
to you? Each farm
owner, manager or
sharemilker will
answer this question
differently: milk solids in the vat, cows in
calf, high-value progeny, longevity, cull
value, easy-manage
cows and more.
The defining point
on this list is that
every farm is different and each farmer
has individual goals
and aspirations. One
size does not fit all.
What all these
aims have in common
is, to achieve any you
need to get your cows
in calf.
A number of
elements contribute
to getting cows in
calf as identified in
DairyNZ’s InCalf
programme, run
Estrotect heat
with consultants and
detectors make
agricultural organisa- the job easy
tions including CRV
and accurate.
AmBreed. These include calving pattern,
ficult – breeding advice
heifer management,
programmes such as
body condition score
CRV AmBreed’s Sireand nutrition, dealing
with non-cyclers, genet- Match make it easy and
effective.
ics and AB practices,
“We recognise every
bull management and
farmer has different
cow health.
CRV AmBreed offers goals and needs,” says
CRV AmBreed product
resources and experimanager Angela Enence in breeding and
twisle.
mating management to
“SireMatch takes
help you and your staff
improve whole-herd fer- this into account, turning the farmer’s breedtility from birth, right
though their productive ing goals into practical
sire advice, with recomlives.
mendations from simple
Genetics, in parinbreeding prevention
ticular the right sires

to customised cow-bycow improvements.”
But before mating
cows, you need to correctly and consistently
pick those on heat. And

if heat detection isn’t
up to scratch your cows
won’t get in calf. Dairy
NZ says the best heat
detection programmes,

Tail paint has been a
good standby, but today
farmers have better detection aids to make the
job easy and accurate.
“CRV’s Estrotect heat
detectors remove a lot
of the uncertainty, even
for farms with large
herds and multiple
staff,” Entwisle says.
“Unlike tailpaint,
Estrotect isn’t affected
by inconsistencies in
application and is much
clearer to read, especially from a distance
or in poor light. We
recommend Estrotects
are applied in time for
pre-mating heats and
right through mating.
“As cows come on
heat and are recorded,
a different colour Estrotect is applied making
it obvious which cows
have not cycled and
need to be referred to a
vet for further investigation to stay within a
concentrated calving
pattern.”
Finally, you’ll want
to make sure those
straws hit the spot.
“Artificial insemination
is something CRV AmBreed knows all about,”
says Entwisle.
“We inseminate close
to half a million cows
each year and have
trained 10,000 dairy
farmers to inseminate

“Genetics, in particular the
right sires to achieve breeding
objectives, is a key element in
getting cows in calf.”
before and during mating, combine planning
and observation with
effective heat detection
aids.

their cows at out AI
training schools.”
What seems like a
tall order in a volatile
season will yield meas-

urable improvement in
future seasons, leading
to improvements in the
herd as culling decisions are made under
production, conformation and management
objectives rather than
fertility and even some
immediate production
results – a side-effect
of more active management practices.

Getting
the right
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the job is
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32

Dairy News // April 12, 2011

animal breeding

Heat detection vital
FOR A successful AB

Observation is the key when
looking for standing heats and
signs of oestrous.

programme farmers
need to achieve a high
percentage of pregnancy,
requiring good oestrous
detection, says Waikato
FarmWise dairy farm
consultant Bridget Ray.
One common reason
for low submission rates
is not enough contact
time between human and

BETTLE7066H_DN

ONE THING YOU CAN AGREE ON

cow, she says. And 20
years of rapid herd-size
growth have made this
more of an issue.
“Those responsible
for identifying cows in
oestrous must understand
the signs of heat to
achieve accurate heat
detection,” she says.
Heat detection aids,
such as Kamars or tail

paint, help ensure cows
order of milking or
cycling are identified
coming into the shed.
and these aids should be
Coming off Heat
checked every milking.
• Will not stand to be
Cows should be
ridden.
observed three times a
• Smell other cows.
day: morning, midday
• Clear mucus
and later evening for 20
discharge from vulva.
minutes each time. This
Ray says it is also
will help identify about
important mating
90% of the heats in the
performance isn’t
herd.
compromised by trace
During cooler weather element deficiencies.
the middle of the day is
“The safest thing to do
generally better.
Cows should be
checked one or two
hours after a move
to a new break as
activity is fairly
low when cows are
eating; oestrous
cows are initially
more interested
in eating than
mounting each
other.
Cows should
be checked before
being let out of the
paddock before
Bridget Ray
milking, says Ray.
is blood test a sample of
“A cow standing to
cows one month before
be mounted is the most
accurate sign of oestrous. mating starts so there is
Standing heat is the most time to treat deficiencies.
“It is also important to
sexually intensive period
remember mating hasn’t
of the oestrous cycle.
finished once AB has
“Cows which move
stopped.
away quickly when a
“Having the right bull
mount is attempted are
numbers and having fit,
not in true oestrous.
“The average duration healthy bulls is important
to reduce empty rates.”
of standing heat is 15-18
Farmers can improve
hours. In a normally
their reproductive
cycling cow, standing
oestrous will occur about performance by
improving their mating
every 21 days (this can
management, she says.
range from 17 to 24
“It is a good idea for
days).
farmers to check their
“Observation is the
key. The more time spent MINDA reproductive
and calving reports from
with the cows looking
the last few seasons to
for standing heats and
identify any problem
signs of oestrous, the
areas.
greater the likelihood of
“Mating performance
detection.”
is largely within the
Signs and stages of
control of individual
oestrous
farmers, and by sitting
Coming into Heat (6down and working out
10 hours in duration)
a plan to improve it and
• Will not stand to be
then implementing that
ridden.
plan, the desired results
• Smells other cows.
can be achieved.”
• Attempts to ride
Decisions farmers
other cows.
make now about when to
• Noisy and restless.
dry off their cows will
On Heat (2-30 hours in
have an impact on their
duration)
next mating season, says
• Stands to be ridden
– hair and skin rubbed on Ray.
“It’s important
crest of tail.
farmers don’t sacrifice
• May see riding
mating performance and
marks e.g. mud on the
milk production next
flanks.
• Will ride other cows. season by, for example,
being tempted to milk on
• Are restless and
too long.
excitable.
“Instead they should
• May stand with back
arched and tail in the air. ensure they dry off in
time to hit their target
• Display a red vulva.
body condition score
• Clear mucus
and pasture covers by
discharge from vulva.
the planned start of
• May hold milk.
calving.”
• May change the

Dairy News // april 12, 2011

33

animal breeding

Bowing out in style
superb udders and were favoured
by farmers in the dairy.
Throughout his career Maunga
has NZMI 155 and BW 178/99%.
His breeding values for udder
traits and farmer likeability rank
among the breed’s best. He continues to sire daughters producing
good volumes of high component
milk with low somatic cells, and
desirable fertility and longevity.
Sired by Parkwood Casper,
Maunga emerged from a
successful cow family in the Tawa
Grove Jersey herd of Taranaki
breeders Robert and Rosemary
Cartwright. Tawa Grove Jerseys
represents a family of Taranaki
Jersey breeders in the business
since 1924.
Cartwrights currently milk
500 Jerseys on 200ha near Inglewood. Their dairy operation includes their three sons assisting
over two farms, recently expanded
to include a nearby dairy block
milking 100 Holstein-Friesians.
Cartwrights are looking forward
to welcoming Maunga back to the
family farm where he’ll live out
his retirement. Auction details are
available at www.crv4all.co.nz or
tel. 0800 262 733.

Profitable genetic options
LIBERTY GENETICS’ 2011 product offering has a strong focus on
creating profitable outcomes for
dairy farmers.
“While payout is high, we see
farmers are still careful to look
for value in their purchases and
robust easy-care cattle for their
herd,” says managing director David Hayman.
“In addition to our core product, the elite young sire-bull
teams, Liberty Genetics is also
producing the most cost-effective
sexed semen for the local market
and export sales.”
The bull teams each consist
of 12-20 of the top young bulls
sourced from a cross section of

New Zealand’s most successful
bull breeding herds, Hayman says.
The three elite bull teams capture the genetic gain benefit of a
short generation-interval strategy.
Total BW is the main selection
driver, but the key traits for modern large-herd management are
also individually monitored.
“We’ve been servicing predominantly large herd customers
for 12 years and we understand
our customer’s preference for
moderate size, fertile, easy care
cattle.
“We also manage the inbreeding risk for our customers, by rolling over the sire team genetics on
a regular basis. This is a simple,

low cost strategy.
“Outcross international genetics are usually only incorporated
when that strain has been proven
to perform in the New Zealand
environment.”
The LG75x sexed semen contains 75% female sperm and is
available from $35 per straw.
Farmers can use this product to
increase replacement numbers or
to capitalise on strong markets for
replacement dairy or beef cross
heifers.
Heifer mating and use of sexed
semen has been shown to significantly ramp up genetic gain and
creates extra early born replacements.

Check out your AB options
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6112C

AFTER SIRING an outstanding
group of nearly 10,000 cows in
1496 New Zealand herds, Impact
sire Tawa Grove Maunga will
support the rebuilding of Christchurch as he heads into retirement.
Final straws from this in-demand bull will be auctioned, all
proceeds going to the Red Cross
Christchurch Earthquake Appeal. The auction is open until
April 30.
CRV AmBreed genetics product manager Nicole Foster says
Maunga has done so much for
the dairy industry that it was a
no-brainer to send him off with
a contribution to a different sort
Tawa Grove Maunga
of success.
“Farmer’s love their Maunand Rosemary Cartwright.
gas,” Foster says. “They’re strong,
“We encourage farmers to get
profitable and long-lasting. ‘Maun- behind this,” says Foster. “Their
ga’s Legacy’ offers farmers the generosity will benefit Christchance to get cows they’ll love church and their herds.”
while supporting Christchurch.
Maunga is a rare stayer in the AI
In addition to their pick of a lim- industry, returning year after year
ited final stock of straws, the lead to pass on fertility, farmer traits,
bidder will participate in a VIP ex- production and beautiful udders.
perience including a farewell to the
After graduating in 2004, Maunbull at CRV AmBreed’s Waikato ga was immediately recognised as
collection centre. They’ll also meet an exceptional well-rounded dual
the breeders of Maunga – Robert index sire whose daughters carried

ay May 4th 2011
d
s
e
n
d
e
40th Annual Sale W
A superb offering of 55 head from a strong breeding families.
Offering comprises:
• 25 Stud In-calf Heifers (4 superior, 19 VHC, 2 A dams)
• 17 Stud Yearling Bulls (7 superior, 6 VHC dams, 4 A 1-1 dams)
• 7 Stud Cows (All VHC)
• 6 Yearling Heifers from top families
In our opinion the offering this year is one of the best lines
we have presented in 40 years of sales, for type and depth
of pedigree, many from long lines of VHC cows, up to 17
generations. Stock stold at previous sales have produced well for
their purchasers.
Catalogues available
mid-April
Agents RD1 Livestock

Beledene Lees Invitation
VHC94
Championship Winner
A son and daughter for sale

ARE YOU A GOOD MATE OR TOP MATE?
CRV AmBreed Mate rewards you for using us for your
entire herd improvement package, all you need to do
is work out if you are a GOOD MATE or a TOP MATE.
Contact your local Field Consultant to find out the rewards you can get for being our Mate.
YOUR CHOICE, YOUR PROFIT

Straw, silage output
chosen to suit
CHOPPING AND distributing
straw or big-bale silage, regardless of their consistency or
quality, is easier using a newmodel Kuhn Primor feeder/
bedder.
The trailed Primor 3570
holds 3m3, so it will carry two
1.5m round bales. It can feed
any long-fibre forage and distribute bedding straw up to
18m through a top chute.
The 3570 has a hydraulically operated regulator at the entrance to the feed rotor which
adjusts throughput according
to material quality, so maintaining working efficiency.
Kuhn says the key to the
Primor’s effectiveness is its robust two-speed gearbox. This typically runs at its lower rate for silage,
and faster when distributing straw.
A power shaft drives a fourstrand power-band system, engaged/disengaged by a hydraulic
cylinder. The power band provides
a high level of power to the distribution beater rotor and acts as a
safety device.

Tow and Fert
Multi 800
The Multi Role Applicator

The bed chain conveyor runs independently to draw material into
the beater rotor.
This can be run at varying
speeds, and reversed, to control the
flow of material into the distribution area. Feed or bedding straw
come out the same top chute, height
adjustable.
An
optional
300-degree
swivelling chute improves access in

tight spaces.
The rear door of the Primor
3570 is hydraulically controlled,
for self loading. All functions are
controlled electronically from the
tractor cab.
Minimum power requirement is
70hp when the Primor 3570 is used
for silage or haylage.

The Tow and Fert means that you are no longer dependant on contractors with
ground spread trucks and aerial applications, who may not want to do a small job of
up to 8 hectares. This enables the optimisation of your fertiliser programme with
timely, cost effective and regular applications!

call now for your free DVD today!
0508 747 040

www.towandfert.com

The Tow and Fert’s guaranteed even spread over an 18 metre swath gives you
confidence that every plant is evenly covered and each cow is receiving the required
mineral dose to keep metabolic issues under control.

the worst jobs on dairy
farms, the shifting of
travelling effluent irrigators is made easier
and cleaner with the
Ezi 018 displayed by
Ezi Irrigation at the
South Island Field
Days.
Farmers usually
shift effluent hose one
section at a time, with
up to six sections in a
typical set-up – time
consuming and dirty.

The Ezi 018 attachment behind an ATV
can tow up to six sections of hose at a time,
attached by camlocks,
and the travelling irrigator can be attached
to a tow ball on top of
the Ezi 018, so all the
pipes and the irrigator
can be shifted at the
same time.
An irrigator near
the end of its run up a
paddock is often pulling many metres of
full effluent hose. This
puts extra strain on the
drive mechanism of the

sprinkler and can cause
it to stop moving forward, leading to ponding. Ponding defeats the
purpose of spreading,
can cause damaging
run-off and can lead to
prosecutions.
To reduce this drag
Ezi 018 enables the
farmer to bring the
middle section of the
drag hose forward,
reducing the length of
heavy hose the sprinkler has to pull.
“This can be done
while the irrigator
is working and with

Save the grunt work
ATTRACTING LOTS of attention at Central Dis-

trict Field Days, this motorised wheelbarrow takes
the grunt out of heavy loads.
The BarrowBull is powered by a 2.5hp 2-stroke
motor with a thumb throttle and centrifugal
clutch.
It can haul a 100kg load up a a 40-degree slope,
then free wheels down.
Rough ground is no obstacle, says inventor Tim
Porter (pictured).
“BarrowBull is as manoeuvrable as a push
wheelbarrow, whether shifting firewood, concrete
or dirt for landscaping.”
Price: $995+GST

www.barrowbull.co.nz

the hose full it slides
around the Ezi 018 with
less chance of folding,”
says manufacturer Jeff
Riordan.
Price $1695+GST,
including tool box,
delivered.
Tel. 03 525 9832
www.ezirrigation.
co.nz

Ezi Irrigation
maker Jeff
Riordan.

36

Dairy News // April 12, 2011

machinery & products

Clearspan sheds ‘driving huge growth’
A FARM shed builder servicing the South Island says
its advanced engineering
software has been the main
driver of “huge growth”
since its set-up three years
ago.
Wide Span Sheds, Ashburton, says it can design
to customers’ requirements
and price a job “in minutes”. Maximum clear span
and height are 30m and 8m
respectively.
“We attribute some of
our growth to our computer
system and design software,
the most advanced software
we know of for building
pre-engineered buildings,”
a spokesman says.
The company offers a
range of pre-engineered
steel sheds and buildings
100% made from New
Zealand Steel products, using high-tensile 450MPa
(or greater) galv steel with
sheeting in both Zincalume
and Colorsteel options.
Sheds can be supplied in
kitset form or fully built.
“We offer customers opportunity to design and customise a shed, warehouse,
workshop, commercial cover, or barn within our preengineered and efficient
design environment,” the
company says.
“This ensures economy,
efficiency and value without
compromising on design.
“Wind and snow loadings are based on an exact
location, not a general area.
We use best industry practices and employ independent engineers to sign off
our sheds before they go
out.”
Tel. 03 308 0324
www.sheds.co.nz

At odds over ATV ‘hairpin’
TONY BENNY

PRESSURE IS growing in Australia to have rollover protection made mandatory for ATVs but
New Zealand distributors remain opposed to the
equipment.
The Australian Center for Agricultural Health
& Safety has recommended all owners of ATVs
fit rollover protection, joining similar calls by
NSW Farmers Association, Australian Workers
Union and Queensland-based Australian Agricultural College Corporation (AACC), reports

...SMARTER
Save 1L/Ha

Weekly Times.
ATV safety is under the spotlight across the
Tasman following the deaths of three people in
ATV accidents in ten days.
The agricultural college’s senior instructor of
intensive livestock, Barry Harding, says ATVs
are widely used for mustering and handling
stock.
“The AACC is at the cutting edge of adopting
safe work practices and reducing the likelihood
of serious accidents, by rolling out Quadbars
across its sites,” Harding says.
To page 37

THE LELY SPLENDIMO HAS THE LOWEST POWER
REQUIREMENTS OF 9 MOWERS TESTED…
SAID, GERMAN FARMING MAGAZINE PROFI
The Lely Splendimo had the lowest power requirement for straight
mowing of any of the machines tested. This results in a fuel saving
of 1 litre per hectare compared to the average test results.
Just calculate what your benefits per year will be.
Features:
• Freedom of movement due to central pivot for
unrivalled ground contour following
• Adjustable ground pressure and strong integrated mower frame
• Maintenance free mechanical “double acting” break away safety device
• All models fitted with quick change mowing blades “Clip System”
• SAFE • SECURE • SIMPLE

Precise reach by fert
FERTILISER IS more precisely
applied by a new Kuhn Axis
50.1 spreader with individually
driven/controlled discs.
Kuhn invented the system,
which has its spreading discs
independent of the tractor motor.
An ‘electronic mass control’
system measures and continuously regulates the fertiliser
flow to each disc. The control

Shockless handling
SPRINGLESS

AND

unbreakable gate handles from Beattie Insulators, Kaikoura, have
a newly designed onepiece hook with connection for bungi, tape or wire.
An insulated plastic handle with large hand shields
protects the user from electric shocks.
The plastic handle will not crack or break, proven
by running it over with a 200hp tractor and baler.
The one-piece hook is also sold separately and can
to replace internal springs in other Beattie handles.
It’s also sold in bungi-gate or race kits and tape-gate
kits with all components including anchor insulator
and live connections.
Tel. 03 319 5467
www.beattieinsulators.co.nz

ATV ‘hairpin’
From page 36

“The organisation is fitting quad roll bars on all its
quads to keep its students safe when training them on
the correct usage of the farm equipment.”
The Australian-made Quadbar is sold in New Zealand and distributor Stuart Davidson told Dairy News
demand here is strong. He’s sold 38 of the 60 bars he
bought from Australia early this year.
“I didn’t know how it would go but you can’t help
but sell products at field days,” Davidson says.
“I’m fronting up and finding people are quite
receptive to the bar and wanting to save their lives.
“I thought I’d have to do the hard sell but it’s not like
that. People approach me with all sorts of weird stories
about falling of bikes and then they buy one.”
And he says he was visited by staff from the Department of Labour who, while they couldn’t be seen
to support one particular brand, did seem to support
the Quadbar.
“They say farmers are reluctant to put on helmets
and if they’re not wearing helmets, at least they’ve got
a bar at the back there. Their idea was these would go
a long way towards stopping injuries.”
But New Zealand Motorcycle Distributors
Association head Paul Stewart says rollover protection
will not make ATVs safer.
“Our position hasn’t changed as an industry. We
don’t recommend them. Honda in particular have done
research indicating the proposed safety these people
are talking about isn’t there,” says Stewart
“An ATV is designed with rounded mudguards and
plastics and those sorts of items so if something does
happen, it effectively rolls over the top of you.
“You might end up with an injury of some
description but you will get away from it, you’ll fall
off it and the machine continues to the bottom until it
stops. But if you somehow can get entangled in items
such as rollover protection you will just keep going
until you get to the bottom.”
Stewart says the industry stands by manufacturers’
recommendations and supports the Department of
Labour’s safety programme.
“People have to learn how to ride them properly,
ride them in the right circumstances, wear a hat, be
trained and keep children off them.”

box indicates the dose actually
spread.
A weighing frame with two
weigh cells continuously indicates the fertiliser quantity remaining in the hopper.
For spreading at paddock
boundaries the operater can
select ‘output’ or ‘environment’. The boundary can be
set left or right, or both sides,
by reducing the spreading disc

speed or by modifying the drop
point.
The Axis 50.1 will spread
up to 500kg/min – at least 1ha/
hour. It can spread 400kg at
20km/h with a working width
set at 36m, Kuhn says.
Capacities are 3000L or
4000L and working widths
18m and 50m.
Tel. 0800 585 007
www.kuhn.co.nz

Save Power and
Lower SCC Count!

“Maree and I would like to let you
know how pleased we are with
our Varivac. Not only does it save
power, but as you
promised it dramatically
reduced our SCC.
Prior to installing the Varivac we
were grading at every pickup for
SCC (the kind of stress parents of
young children can do
without in spring). I have enclosed a copy of our Fonterra SCC
graph clearly showing the day the
Varivac was fitted. We now average 130,000 SCC and life is good.
We would not
hesitate to recommend Varivac to
anyone else in our situation.

The farm had serious Somatic
Cell Count figures and mastitis
problems. We installed a
Varivac vacuum control system
and the problems are now gone.
Quite simply it works.
Steven Robb, Dairy Farmer,
Morrinsville, NZ

Best wishes and thanks again”

Hamish & Maree Tong
06 272 6349

We have had many years of high SSC. In fact, since putting in a new
milking plant 10 years ago and no one being able to fix the problem
and having culled heavily because of this we didn’t know where to turn
next.
We saw the article on Varivac and decided to give it a go. Well, we are
delighted with the results. Proof is in the graph taken off Fence-post.
Our SSC compared with the company average. Coupled with the added
power savings we couldn’t be more pleased. Thanks Varivac

‘GAME CHANGER’ is
probably an overstatement, in true marketing
fashion, by Hyundai
about its recent car offering.
But it’s fair to say the
Korean company’s new
mid-size sedan, the i45,
should put the maker on
the same footing as the
default fleet-car brands
– Toyota, Ford, Nissan,
et al.
This is where the
big sales numbers are
achieved in New Zealand
and Hyundai hopes
this car will follow the
Santa Fe’s success and
achieve real scale in sales
volume.
The rakish new car
is certainly a more
competitive entrant in
the cut-throat mid-size
sector than Hyundai have
fielded before.
It’s a good car, built

to the standard Hyundai
is now known for, and
it also looks like a good
car. The Sonata this car
replaces could not really
make that last claim.
As you’d expect in a
Korean car, you get a lot
of kit for your money,
even in the base model
which retails at $42,990.
Central locking with
keyless entry and alarm,
cruise control, trip computer and paddle shifters
all feature. You’ll get
only the 2L engine for
that money, though that’s
no bad thing with 122kW
on tap.
We drove the 2.4L and
found the 148kW engine
a strong performer with
a solid 250Nm of torque
available at 4250rpm.
Matched to a 6-speed
automatic the car makes
effortless progress, a
pre-requisite in a sector
dominated by Mondeos
and Camrys.
Fuel efficiency never

quite hit the claimed
7.9L/100km, but on a
longer run it would be
realistic.
The Elite i45 rides
quietly on tasty 18-inch
alloys clad in 215/55 R16

rubber and the handling
and ride proved extremely
competent. Not sporty,
not dynamic, but safe and
assured – again, something expected in this

category.
Passenger space is
generous as is boot capacity at a capacious 523L.
And equipment on
the Elite impressed,

Bells ringing
for Rover
FOUR YEARS after its launch the Land Rover Freelander 2 has

achieved 250,000 units made at the Halewood, Merseyside factory.
And sales are up, says Halewood operations director Richard Else. He cited “growing demand”, sales up 22% year-todate (Apr 2010 – Feb 2011) compared with the same 11 month
period in 2009-10.
The 250,000th vehicle was a 2.2L TD4 Diesel GS in Fuji
White destined for a customer in Scotland.
“This milestone achievement and the increasing sales for
Freelander 2 highlights how important this vehicle is to Halewood and the regional and UK economy,” Else said. “About
70% of Freelanders made at Halewood are exported.”
The 2011 Freelander 2 is available with 4WD and a 2.2L
diesel engine of 140kW or 110kW.
It is said to have class-leading on- and off-road performance.
Features include the maker’s Terrain Response, a “premium” cabin and improved fuel economy.
Priced: from $65,990.

with leather, electric seat
warmers, sports suspension and rain-sensing
wipers just for starters.
Order the top Elite Ltd
model and get even more

fruit, but pay $52,990 –
not cheap, but it’s been a
while since Hyundai migrated from the bargain
basement Chinese brands
are starting to populate.

Set your farm up for
a productive spring.
At PGG Wrightson, weâ&#x20AC;&#x2122;re focused on providing technical advice and expertise to
support your animal health and farm system choices. Now is the time to set your
farm up for a productive spring. Addressing animal health challenges and ensuring
stock are well conditioned now will increase performance in the months ahead.
Talk to the team about your animal health requirements and weâ&#x20AC;&#x2122;ll help you choose
the right treatments at the right time for the best results.
With a wide range of quality products backed with sound
technical advice, we can help you grow the country.